What Should You Do With $10 Million in Investments?

A $10 million portfolio creates financial flexibility, but it also introduces decisions that can become increasingly difficult to manage without a coordinated strategy. Your investments may be spread across taxable brokerage accounts, traditional IRAs, Roth accounts, trusts, company stock, and other assets. Each account has different tax treatment, restrictions, and planning opportunities.

The first step is to understand what you own, how the assets are taxed, when you may need the money, and what you want the portfolio to accomplish. A retirement-focused household may prioritize sustainable income and tax-efficient withdrawals. Someone still working may have a longer investment horizon, substantial equity compensation, or a concentrated position in a public company. A family focused on generational wealth may place greater emphasis on estate planning, gifting, and charitable strategies.

Rather than applying one allocation or investment strategy to every household, a comprehensive plan should account for the following:

• Investment allocation. Determine how much belongs in stocks, bonds, cash, and other investments based on goals, time horizon, and ability to tolerate losses.
• Diversification. Evaluate exposure across companies, industries, countries, asset classes, and sources of income.
• Tax efficiency. Coordinate investment selection, account location, capital gains, tax-loss harvesting, and withdrawals.
• Liquidity. Maintain enough accessible assets for spending, large purchases, taxes, and unexpected needs.
• Concentrated positions. Address company stock, stock options, restricted stock units, business interests, and inherited holdings.
• Retirement and family planning. Connect the investment portfolio to retirement income, charitable giving, estate objectives, and wealth transfer.

The investment strategy should reflect the household's complete financial picture, not simply the balance of one brokerage account.

How Should You Allocate a $10 Million Portfolio?

Asset allocation is one of the most important decisions when managing a substantial investment portfolio. The mix of stocks, bonds, cash, and other investments determines much of the portfolio's long-term risk and return potential. It also influences how much money may be available during market declines and how reliably the portfolio can support future spending.

There is no universally appropriate allocation for $10 million. A household that needs to fund retirement for several decades may require a different portfolio from someone who continues earning a high income and does not expect to draw from investments for years. A family with significant company stock or private business exposure may already have substantial equity risk outside its managed portfolio.

The following examples illustrate how investment priorities can differ. They are not recommended allocations or model portfolios.

Investment categories are illustrative. Actual allocations depend on individual circumstances, risk tolerance, time horizon, and financial objectives.

For a household with $10 million, the question is not simply how much to invest in stocks or bonds. It is how the entire balance sheet fits together. A large position in employer stock, real estate, a private business, or private investments can materially change the risk of the overall household even if the managed portfolio appears diversified.

How Do You Diversify $10 Million in Investments?

Diversification means spreading investments across different sources of risk rather than relying too heavily on one company, industry, country, or investment strategy. A portfolio can hold dozens of mutual funds and ETFs and still have significant overlap if the underlying investments own many of the same companies.

For example, an investor may own several large-cap growth funds, technology funds, and individual technology stocks. The number of holdings may appear substantial, but the portfolio could still depend heavily on a relatively small group of companies. The same issue can occur with employer stock, stock options, and restricted stock units.

A coordinated investment strategy should examine:

• Company concentration. Identify positions that represent a large percentage of total household wealth.
• Industry exposure. Review whether multiple funds and individual securities create an unintended concentration in the same sectors.
• Geographic exposure. Consider whether the portfolio depends too heavily on the U.S. market or a limited number of foreign markets.
• Investment style. Review exposure to growth, value, large-cap, small-cap, and other segments of the market.
• Fixed-income risk. Evaluate credit quality, maturity, duration, and issuer concentration.
• Liquidity. Understand how quickly investments can be sold and whether restrictions or redemption terms apply.

Broad diversification does not eliminate market risk or guarantee a profit. It can, however, reduce dependence on a single investment or market segment and help align portfolio risk with the household's broader financial goals.

What Should You Do With Concentrated Company Stock?

One of the most important investment decisions for high-net-worth professionals is managing a large position in employer stock. Executives and employees at publicly traded companies may accumulate substantial wealth through restricted stock units, incentive stock options, nonqualified stock options, employee stock purchase plans, and company shares held in brokerage accounts.

In some cases, a single company represents a large percentage of the household's net worth. This creates a difficult decision: selling may trigger capital gains taxes or require careful option planning, while holding too much stock exposes the household to the financial performance of one company.

A concentrated stock strategy should consider several factors:

• Current concentration. Measure the position against the full household balance sheet, including unvested awards and other company-related compensation where appropriate.
• Tax consequences. Identify cost basis, holding periods, option exercise considerations, and the potential capital gains from selling shares.
• Future compensation. Consider whether additional RSUs, options, or employer stock purchases will increase exposure over time.
• Liquidity needs. Determine whether shares may be needed for near-term spending, taxes, or other financial commitments.
• Sale strategy. Evaluate whether a gradual reduction, scheduled sales, or other approaches can help manage risk and taxes.
• Portfolio replacement. Decide how proceeds should be reinvested to improve diversification and support the household's long-term allocation.

For employees at aerospace, defense, and technology companies, tender offers and equity compensation events can add another layer of complexity. A tender offer may provide an opportunity to sell shares, but the decision should be evaluated alongside taxes, remaining exposure, liquidity, and the household's overall investment plan.

Holding a successful company's stock can create substantial wealth. It can also leave a household overly dependent on one business. The right approach balances the desire to participate in future growth with the need to protect the wealth already accumulated.

Can Direct Indexing Help Manage a $10 Million Portfolio?

Direct indexing is an investment approach that provides individual ownership of the securities in an index rather than relying solely on an index mutual fund or ETF. This can give investors greater flexibility to manage individual positions, realize tax losses, and customize parts of a portfolio.

For households with substantial taxable investment accounts, direct indexing may provide opportunities that are more difficult to implement in a traditional pooled fund. A portfolio holding individual securities can sell positions trading below their cost basis and potentially use realized losses to offset capital gains, subject to applicable tax rules.

Potential uses include:

• Tax-loss harvesting. Realize investment losses when appropriate and use them to offset capital gains, subject to wash-sale rules and other tax considerations.
• Portfolio customization. Exclude certain companies or industries when the household has specific investment restrictions or existing exposures.
• Concentrated stock management. Coordinate the broader portfolio with a large existing company stock position.
• Tax management. Consider the tax consequences of individual security sales rather than treating the entire index as one holding.

Direct indexing is not automatically better than using diversified ETFs or mutual funds. It can involve additional trading, tracking differences, operational complexity, and costs. Tax benefits also depend on the investor's tax situation, account type, gains, losses, and future investment activity.

Wash-sale rules require particular attention when harvesting losses. Purchases in other accounts, including a spouse's accounts or retirement accounts, can affect whether a loss is deductible. A coordinated household-level process is important when multiple accounts and investment managers are involved.

How Can You Make a $10 Million Portfolio More Tax-Efficient?

Taxes can have a substantial effect on long-term investment results. Two households with the same portfolio return may retain different amounts of wealth depending on the types of accounts they use, the investments they own, and when they realize income or capital gains.

Tax-efficient investment management looks beyond the individual account. It coordinates taxable brokerage accounts, traditional retirement accounts, Roth accounts, trusts, and other investments to help manage the household's overall tax exposure.

Asset Location Across Taxable, Traditional, and Roth Accounts

Asset location refers to deciding which investments belong in which types of accounts. Different investments generate different forms of income, and account tax treatment can influence how much of that return the household keeps.

For example, interest-producing investments may be considered differently for traditional retirement accounts than for taxable accounts. Roth accounts may be particularly important for investments expected to appreciate over a long period because qualified Roth withdrawals can receive favorable tax treatment. The appropriate placement depends on the household's tax situation, investment strategy, and withdrawal plans.

Tax-Loss Harvesting

Tax-loss harvesting involves selling investments at a loss to realize capital losses that may offset capital gains. Unused losses may also be subject to carryforward rules. The decision to harvest a loss should account for the investment's role in the portfolio, replacement holdings, transaction costs, and wash-sale rules.

At $10 million, even a relatively small amount of tax management can involve many individual positions and accounts. Consistent monitoring and coordination can help prevent avoidable tax issues.

Managing Capital Gains

Selling appreciated investments can create taxable capital gains. Rather than making large portfolio changes without considering the tax consequences, investors should evaluate the timing and size of sales, available losses, charitable opportunities, and the household's current and expected income.

Some households may benefit from spreading sales across multiple tax years. Others may have a particular year with lower income or other circumstances that make realizing gains more manageable. Tax decisions should be coordinated with the household's CPA or tax professional.

Roth Conversion Planning

Converting traditional IRA assets to a Roth IRA generally creates taxable income in the year of conversion. For retirees and pre-retirees with substantial pre-tax balances, planned conversions may help manage future required minimum distributions and the tax treatment of retirement income.

The decision requires comparing the current tax cost with potential future benefits. A conversion that pushes income into a higher bracket or increases Medicare premiums may not be appropriate. The analysis should consider other income, future withdrawal needs, charitable plans, and estate objectives.

How Should You Manage Retirement Income From $10 Million?

For households approaching retirement, a $10 million portfolio can provide significant flexibility. The challenge is turning investments into a sustainable source of income while managing taxes, inflation, market risk, and the possibility of a long retirement.

A retirement income plan should identify which accounts will fund spending, how much liquidity is needed, and how withdrawals may change during different market environments. It should also consider Social Security, pensions, deferred compensation, rental income, and other sources of cash flow.

Important decisions include:

• Withdrawal sequencing. Determine how taxable, traditional retirement, and Roth accounts may be used to fund spending over time.
• Social Security timing. Evaluate claiming ages, household benefits, longevity, and the interaction with other retirement income.
• Required minimum distributions. Plan for distributions from applicable retirement accounts and their effect on taxable income.
• Cash reserves. Maintain appropriate liquidity for near-term spending without allowing excessive cash to undermine long-term investment objectives.
• Market downturns. Evaluate how withdrawals may be adjusted during periods of declining portfolio values.
• Medicare premiums. Consider how taxable income can affect income-related Medicare premium adjustments.

The amount a household can spend depends on more than the portfolio balance. Age, spending, other income, taxes, investment allocation, longevity, and legacy goals all influence the plan.

For a related example, see our analysis of how to generate retirement income from $5 million and our guide to retiring with $5 million at age 60.

How Much Should You Keep in Cash With $10 Million Invested?

Cash serves an important purpose, but holding too much can reduce the portfolio's long-term growth potential. The appropriate amount depends on spending needs, upcoming purchases, tax obligations, income sources, and the household's ability to tolerate market declines.

A cash reserve may be used for:

• Regular retirement withdrawals and household expenses.
• Estimated tax payments and other predictable liabilities.
• Major purchases, property transactions, or planned gifts.
• Unexpected expenses or changes in employment income.
• Liquidity while deciding how to invest proceeds from a business sale, inheritance, or company stock transaction.

Cash should have a defined role in the investment plan. A household that holds several million dollars in cash without a specific spending or investment purpose may be taking a different type of risk: losing purchasing power over time and missing potential market growth.

On the other hand, investing every available dollar in stocks can create unnecessary pressure to sell during a downturn when cash is needed. A coordinated liquidity strategy balances near-term flexibility with longer-term investment objectives.

Should You Invest in Private Credit, Private Equity, or Alternative Investments?

Investors with $10 million or more are frequently approached about private credit, private equity, hedge funds, structured products, and other alternative investments. These strategies may offer different sources of return or access to investments that are not available through traditional public markets. They can also introduce higher costs, limited liquidity, complex structures, and additional risks.

Before allocating money to an alternative investment, consider:

• Liquidity restrictions. Understand redemption schedules, lockups, gates, notice periods, and the possibility that withdrawals may be delayed.
• Total expenses. Review management fees, incentive fees, fund expenses, transaction costs, and any additional charges.
• Valuation. Understand how often investments are valued and whether reported values are based on observable market prices or estimates.
• Underlying risk. Review credit quality, leverage, counterparty exposure, strategy concentration, and the possibility of permanent capital loss.
• Portfolio role. Determine what the investment is expected to accomplish and whether a simpler, more liquid alternative could serve the same purpose.
• Manager and structure. Evaluate the investment manager, legal structure, reporting, and relevant conflicts of interest.

Private investments should not be added simply because they are marketed to wealthy investors or have limited availability. Their role should be evaluated within the complete portfolio, including liquidity needs and the household's ability to tolerate losses or extended holding periods.

Our article on private credit redemption limits explains why liquidity terms deserve particular attention.

How Should You Plan for Charitable Giving With $10 Million?

Charitable giving can be an important part of wealth management for families with substantial assets. The timing and structure of a gift may influence the tax result, the organizations supported, and how charitable intentions are carried forward across generations.

A donor-advised fund is one option for investors who want to contribute assets to a charitable account, potentially receive an eligible tax deduction in the year of contribution, and recommend grants to charities over time. Donating appreciated investments may also help avoid realizing capital gains that would otherwise arise from selling those investments first, subject to applicable tax rules and eligibility requirements.

Other charitable strategies may include qualified charitable distributions from eligible retirement accounts, direct gifts of appreciated securities, charitable trusts, and planned giving through an estate.

The right approach depends on the household's charitable goals, tax situation, age, account types, and estate plan. Coordinate larger gifts with a CPA and estate attorney to understand the tax and legal implications before transferring assets.

How Does Estate Planning Fit Into Managing $10 Million?

At $10 million, investment management and estate planning should work together. The way assets are titled, the beneficiaries named on retirement accounts, and the structure of trusts can affect how wealth is transferred and how much flexibility family members have after a death.

An estate plan should be reviewed as assets grow, family circumstances change, and laws evolve. Important considerations may include:

• Wills and revocable trusts. Confirm that documents reflect current intentions and coordinate with how assets are titled.
• Beneficiary designations. Review retirement accounts, insurance policies, and other assets that transfer according to beneficiary forms.
• Trust planning. Evaluate whether trusts are appropriate for control, asset management, family circumstances, and wealth transfer objectives.
• Gifting strategies. Consider lifetime gifts and other approaches to transferring wealth while accounting for tax and family implications.
• Charitable objectives. Coordinate charitable giving with the estate plan and the family's long-term intentions.
• Surviving spouse planning. Consider how investment accounts, income, taxes, and estate documents will work after the first spouse dies.

Investment advisors do not replace estate attorneys. Their role is to coordinate investment and financial planning decisions with the legal professionals responsible for drafting and maintaining estate documents.

How Should Families Manage and Transfer Wealth Across Generations?

For families with substantial wealth, the investment strategy may extend beyond the current generation. Parents may want to help adult children purchase homes, fund education, start businesses, or build long-term financial security. They may also want to establish expectations around inheritances and charitable giving.

These decisions involve more than determining how much money to transfer. Families should consider when assets should be distributed, how recipients will manage them, whether trusts are appropriate, and how financial support fits into broader family goals.

A coordinated plan may address:

• Lifetime gifts and the timing of wealth transfers.
• Trust structures and the role of trustees.
• Education and financial support for children and grandchildren.
• Family business interests and succession planning.
• Charitable giving and shared philanthropic priorities.
• Investment education and financial responsibilities for future generations.

Families do not need to make every decision at once. Regular reviews can help keep investment, tax, and estate strategies aligned as circumstances change.

How Much Does It Cost to Have $10 Million Managed?

Investment management fees vary by firm, portfolio size, services, and the complexity of the relationship. Some advisors use a standard percentage-based schedule, while others negotiate fees for larger households. The stated advisory fee is also only one component of total investment cost. Fund expenses, trading costs, and product-level charges may apply separately.

At Inclinevest Wealth Management, advisory fees for households with $10 million or more in managed assets are individually negotiated. Pricing takes into account the assets managed, the complexity of the household's financial situation, and the scope of ongoing services. The proposed fee is discussed before an advisory agreement is signed. Depending on the relationship, pricing may be below the firm's standard published schedule.

This approach recognizes that two households with the same portfolio balance may have very different planning needs. One may primarily require investment management, while another may need ongoing coordination involving concentrated company stock, multiple trusts, charitable giving, complex tax planning, retirement income, and multigenerational wealth transfer.

When comparing advisors, ask for the annual advisory fee in dollars, what services are included, and whether the firm receives compensation from investment or insurance products. Also review the expense ratios of the proposed investments and any additional costs associated with the account or investment platform.

Inclinevest is a fee-only fiduciary firm and does not earn commissions from the investment or insurance products it recommends. Learn more about our wealth management services and fees.

How Inclinevest Wealth Management Manages $10 Million Portfolios

Inclinevest Wealth Management works with high-net-worth and ultra-high-net-worth households, including executives, business owners, aerospace and defense professionals, and retirees. The firm provides investment management and comprehensive financial planning, with an emphasis on coordinating investment decisions with taxes, retirement income, and long-term family objectives.

Investment management begins with understanding the household's existing assets, account structure, investment exposure, liquidity needs, and financial goals. Portfolios are built around a globally diversified investment approach, with attention to costs, tax efficiency, and the risks already present elsewhere in the household's balance sheet.

Ongoing planning may include:

• Investment allocation, diversification, and portfolio rebalancing.
• Concentrated stock and equity compensation planning.
• Tax-loss harvesting and tax-efficient investment management.
• Retirement income projections and withdrawal strategies.
• Social Security and Medicare planning considerations.
• Charitable giving and donor-advised fund strategies.
• Coordination with CPAs and estate attorneys.
• Planning around trusts, inheritances, and generational wealth transfer.

Client assets are held in the client's own name at Charles Schwab. Inclinevest uses institutional investment and planning technology to monitor portfolios and keep financial projections current. The firm is fee-only and does not receive commissions from investment or insurance products it recommends.

For households with $10 million or more in managed assets, the advisory fee is individually negotiated based on assets managed, complexity, and scope of services. The proposed fee and services are discussed directly with prospective clients before an advisory relationship begins.

To learn more about the firm's approach, read our investment philosophy or review our services and fees. You can also schedule a free 30-minute introductory call to discuss your portfolio and financial planning needs.

Gabriel Motta CFP®, MBA

About the Author

Gabriel Motta, CFP®, MBA, AWMA™, is the founder and principal of Inclinevest Wealth Management, a fee-only fiduciary wealth management firm. He works with high-net-worth and ultra-high-net-worth households nationwide, with particular experience serving aerospace and defense professionals. His work includes investment management and wealth growth, retirement income planning, tax-efficient withdrawals, equity compensation, charitable giving, and coordination with CPAs and estate attorneys. Gabriel is a NAPFA and XY Planning Network member. Learn more about Gabriel and Inclinevest Wealth Management or schedule an introductory conversation.

This article is for general informational and educational purposes only. It isn't personalized investment, tax, or legal advice, and it shouldn't be relied on as a substitute for guidance specific to your situation. Inclinevest LLC is a registered investment adviser. Registration doesn't imply any level of skill or training. Please consult a qualified professional before making decisions about your own financial circumstances.