How to Invest $10 Million

With $10 million to invest, you’re in a position that offers both exceptional opportunity and considerable responsibility. This level of wealth can support a comfortable lifestyle, ensure long-term financial security for you and your family and allow you to make a meaningful impact through charitable giving or legacy planning. With such a substantial portfolio, you have the flexibility to diversify across a wide range of asset classes.

For tailored guidance, consider consulting with a financial advisor. One who specializes in high-net-worth planning and wealth management may be particularly helpful.

Invest in Index Funds

One of the simplest and most cost-effective ways to invest a portion of your portfolio is through index funds. Popularized by Vanguard founder Jack Bogle, these low-fee, passive investment vehicles are designed to track the performance of major market benchmarks, like the S&P 500 or the Dow Jones Industrial Average. Instead of picking individual stocks, index fund investors gain broad market exposure, effectively allowing them to “buy the market” in a single transaction.

The appeal of index funds lies in their long-term growth potential. While the stock market naturally experiences ups and downs from year to year, it has historically delivered strong average returns over time. Take the S&P 500, for example, which represents 500 of the largest publicly traded companies. It has generated average annual returns of around 10% since 1928, according to DQYDJ’s S&P 500 Return Calculator.

Another advantage of index funds is their low cost. Because they are passively managed, index funds tend to have significantly lower expense ratios than actively managed mutual funds. In fact, Morningstar reported that the average asset-weighted expense ratio for index funds was just 0.12%, compared to 0.41% for all U.S. mutual funds and ETFs. That may seem like a small difference, but over a period of 20 to 30 years, it can translate to hundreds of thousands or even millions of dollars saved, especially for high-net-worth portfolios.

Open a Separately Manage Account

A woman works on investing $10 million in a portfolio.

While similar to mutual funds and ETFs, separately managed accounts (SMAs) offer a more personalized approach to investing. With an SMA, you can invest in a variety of securities. However, your money won’t be pooled together with the assets of other investors, like mutual funds and ETFs.

Instead, a money manager or financial advisor invests your money in a portfolio of assets customized to your investment goals, time horizon and risk tolerance. With an SMA, you’ll have more control and flexibility over how your funds are invested compared to mutual funds, which rely on fund managers to conduct transactions.

While financial institutions typically require a six-figure initial investment to establish an SMA, that won’t be an issue with $10 million to invest. They also require a bit more attention and effort to manage than a typical index fund or mutual fund. This personalized touch comes at a cost. The fees associated with SMAs are also typically higher than the expense ratios of mutual funds.

Invest in Real Estate

Real estate remains a highly popular asset class for its relative stability, track record of appreciation and tax advantages. Specifically, rental properties and commercial real estate can serve as profitable investments that provide consistent cash flow. That said, being a residential or commercial landlord can be more labor-intensive than owning a stock. You can, however, outsource landlord duties to property management companies that will collect rent, fill vacancies and arrange for maintenance.

In addition to monthly rent checks, your properties stand to increase in value each year. Though not adjusted for inflation, the median sales price of a one-family home in the United States has increased from $119,900 in the second quarter of 1991 to $405,300 in the fourth quarter of 2025. Additionally, there are several tax advantages to owning rental properties, including the deduction of property expenses like insurance and taxes from the rental income you earn.

If owning properties doesn’t suit you, you could also consider loaning hard money to house flippers or rental property investors. Hard money loans are short-term loans that you usually must repay within a year. While hard money lending carries considerable risk, these loans have interest rates between 10% and 18%. This can make them lucrative short-term investments.

Another option is to invest in a real estate investment trust (REIT). This is a company that either owns mortgages of income-producing properties or owns a portfolio of those properties itself. Many ETFs invest in REITs. You can even find a REIT that owns specific types of properties you want to invest in, such as office buildings.

Keep Cash on Hand

You don’t need to invest your entire $10 million all at once. In fact, maintaining a portion of your portfolio in cash or cash equivalents can provide valuable liquidity and flexibility. That’s especially true when market opportunities arise. With sufficient cash reserves, you’ll be in a position to quickly capitalize on market corrections, purchase undervalued assets or act fast on time-sensitive investments like real estate deals. Without that liquidity, you may have to sell other holdings to access the funds you need, potentially at a loss or during unfavorable market conditions.

So, how much cash should you keep? Holding too much can limit your portfolio’s growth potential. But many financial professionals recommend allocating between 3% and 10% of your total assets to cash or near-cash holdings. For a $10 million portfolio, that translates to $300,000 to $1 million readily available for opportunities, emergencies or short-term spending needs.

Ultimately, the right cash allocation will depend on your investment strategy, risk tolerance and financial goals. If you’re actively involved in real estate, private equity or other illiquid investments, you may want to lean toward the higher end of the range to stay agile. On the other hand, if your portfolio is heavily weighted in liquid, marketable securities, a smaller cash reserve may be sufficient.

Sample Asset Allocation for a $10 Million Portfolio

A $10 million portfolio offers the flexibility to create a highly diversified investment strategy that can balance growth, income and preservation of wealth. At this level of capital, asset allocation becomes less about chasing high returns and more about managing risk, generating stable income and preserving purchasing power across generations.

Here’s a sample asset allocation for a high-net-worth investor with a moderate risk tolerance and long-term objectives such as retirement income, legacy planning and philanthropic giving:

40% equities ($4 million). Diversify across U.S. large-cap, small-cap and international stocks. Include growth and dividend-paying companies to balance appreciation with income generation. A portion may be allocated to actively managed funds or private equity for added diversification.
25% fixed income ($2.5 million). Invest in a mix of municipal bonds (for tax advantages), corporate bonds and U.S. Treasuries. Consider laddering maturities to maintain liquidity while capturing competitive yields.
15% alternatives ($1.5 million). Allocate to REITs, hedge funds, private credit or commodities. These non-correlated assets can offer diversification and potential inflation protection.
10% cash or cash equivalents ($1 million). Maintain a sizable reserve in high-yield savings or money market funds for liquidity, large purchases or market opportunities.
10% impact or philanthropic investments ($1 million). Consider donor-advised funds, ESG-aligned portfolios or direct charitable giving vehicles. This portion can also include trust planning and family foundations, depending on your legacy goals.

How Can an Advisor Help You Create a Plan to Invest $10 Million?

Managing $10 million requires a level of sophistication that goes well beyond standard investment advice. At this level of wealth, a financial advisor functions less as a general planner and more as a strategic architect. They can help to coordinate complex strategies across investments, taxes, estate planning and risk management to preserve and grow your wealth over generations.

One of the first strategies an advisor will implement is direct indexing. Rather than investing in index funds, direct indexing involves purchasing the individual stocks that make up an index directly in a taxable account. With $10 million, you have the scale to make this viable. The advantage is precise tax-loss harvesting at the individual security level, allowing your advisor to sell underperforming stocks to offset gains elsewhere in your portfolio while maintaining your overall market exposure. Over time, this can generate significant tax savings that compound meaningfully.

Alternative investments become genuinely accessible at this level of wealth, and an advisor will help you evaluate which ones belong in your portfolio. Private equity, hedge funds, real estate syndications and private credit funds typically require large minimum investments and are reserved for accredited or qualified purchasers. An advisor will assess these opportunities critically, identifying those that offer true diversification and return potential beyond what public markets provide while avoiding vehicles with excessive fees or liquidity constraints that don’t suit your needs.

Concentrated position management is another area where an advisor adds significant value. Many individuals who accumulate $10 million do so through equity in a single company, whether through stock compensation, a business sale or long-term holdings. Holding a concentrated position carries substantial risk, but selling outright triggers a large capital gains tax bill. An advisor will deploy strategies such as exchange funds, charitable remainder trusts or systematic hedging to reduce concentration risk gradually and tax-efficiently.

At $10 million, the structure of how you hold your assets matters as much as what you hold. An advisor will work alongside legal and tax professionals to evaluate whether holding investments through trusts, family limited partnerships or LLCs makes sense for your situation. These structures can provide liability protection, facilitate wealth transfer and reduce estate tax exposure, all of which become increasingly important as your net worth grows.

Lastly, philanthropic planning is another dimension an advisor will help you navigate. Donor-advised funds allow you to make a large charitable contribution in a high-income year, claim an immediate tax deduction and distribute grants to charities over time. Private foundations offer even greater control and legacy potential for those with significant philanthropic goals. An advisor will help you choose the right vehicle and integrate it into your broader financial plan in a way that reflects your values and maximizes tax efficiency.

Bottom Line

An investor creates a plan for how to invest $10 million.

With $10 million at your disposal, you’ll have seemingly endless choices for how to invest the money. Index funds are a great option for set-it-and-forget-it investors looking to piggyback on the stock market’s historical long-term returns. Investors wanting more customization can work with an advisor and set up a separately managed account that fits their personal needs.

Rental properties and commercial real estate are also solid asset classes to consider. They provide investors with cash flow from rents, tax benefits and appreciation. A savvy investor will spread their money across a number of investments in different sectors and keep cash on hand to capitalize on undervalued assets in the future.

Investing Tips

You may only be able to take your portfolio so far on your own. The more you have to invest, the more opportunities that are opened to you. It could be helpful to work with a financial advisor to create a financial plan and access these opportunities. Finding a qualified financial advisor doesn’t have to be hard, either. SmartAsset’s free tool matches you with financial advisors who serve your area. You can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
A person’s risk tolerance is a key component of their investor profile. SmartAsset’s free asset allocation calculator can recommend an appropriate allocation based on how risk-averse you are.