{"id":18455,"date":"2024-09-01T17:40:00","date_gmt":"2024-09-01T17:40:00","guid":{"rendered":"https:\/\/www.wallstreetzen.com\/blog\/?p=18455"},"modified":"2026-01-08T15:34:29","modified_gmt":"2026-01-08T15:34:29","slug":"how-to-invest-5-million-dollars","status":"publish","type":"post","link":"https:\/\/www.wallstreetzen.com\/blog\/how-to-invest-5-million-dollars\/","title":{"rendered":"How to Invest $5 Million Dollars [What to do in 2026‘s Market]"},"content":{"rendered":"\n

If you have $5 million to invest, you have quite a few opportunities to grow your wealth even more. Choosing the right investments can set you up for life.<\/p>\n\n\n\n

But while growing your wealth is important, once you have a few million in the bank, managing your risk becomes even more important.<\/p>\n\n\n\n

Need help navigating it all? Below, you\u2019ll find a list of great ways to invest $5 million while preserving your wealth and keeping risk management top of mind. Here\u2019s how to invest 5 million dollars:<\/p>\n\n\n

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FEATURED OFFER: Masterworks<\/b><\/p>\n

Want an investment that\u2019s fueled by the ultra-wealthy? Try art.\u00a0<\/span><\/p>\n

Since 1995, contemporary art has appreciated 11.4% annually on average. That\u2019s 43% more than the S&P over the last 30 years (1995-2024). After all, there\u2019s a reason why many HNW individuals can invest almost an entire 10%+ of their wealth in art.<\/span><\/p>\n

Want in? You can invest in shares of million-dollar painting offerings with Masterworks<\/a>, the world\u2019s first art investment platform.\u00a0<\/span><\/p>\n

For a limited time, you can <\/span>skip the waitlist here<\/b><\/a><\/p>\n

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The 12 Best Ways to Invest $5 Million in 2026<\/strong><\/h2>\n\n\n\n

Need some ideas for how to invest $5 million? Consider these: <\/p>\n\n\n\n

1. Invest in Stocks and ETFs <\/strong><\/h2>\n\n\n\n

If you\u2019ve amassed a large nest egg, you may have already invested in the stock market. Stocks and ETFs can help you maintain and build wealth for the long term, and the stock market has a long track record of solid returns.<\/p>\n\n\n\n

In fact, the S&P 500 has averaged nearly 10% returns over the last 100 years.<\/em><\/p>\n\n\n\n

If you haven\u2019t invested in stocks before, it\u2019s accessible to just about anyone, regardless of account size. Investing small amounts of money allows you to use almost any investing app.<\/p>\n\n\n\n

Let’s be real \u2014 if you have $5 million, then you have enough to invest in professional money management.<\/p>\n\n\n\n

But stock-picking can be rewarding \u2014 so you may want to try your hand at DIY investing with a portion of your wealth. (To be clear, I don’t suggest plunking down all of your $5 million on stocks on any platform \u2014 maybe just a small portion.)<\/p>\n\n\n\n

Whether you’re a new investor or a seasoned pro, eToro<\/a> is an excellent all-around brokerage. Not only does it have a paper trading feature where you can test out strategies and execute virtual trades with virtual money, but it also has a CopyTrader feature that lets you follow the trades of top-rated traders. <\/p>\n\n\n\n

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Check out eToro<\/strong><\/a><\/div>\n<\/div>\n\n\n\n

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eToro securities trading is offered by eToro USA Securities, Inc. (\u201cthe BD\u201d), member of FINRA and SIPC. Cryptocurrency is offered by eToro USA LLC (\u201cthe MSB\u201d) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. https:\/\/www.wallstreetzen.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and\/or the BD.<\/p>\r\n<\/div><\/div>\n\n\n

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If you want to choose your own stocks, you need more than a brokerage \u2014 you need the right tools for researching potential stocks. <\/p>\n\n\n\n

Our Zen Ratings<\/a> system may be exactly what you’re looking for. <\/p>\n\n\n\n

Zen Ratings is our proprietary ratings system that distills 115 factors proven to drive stock growth into a simple, easy-to-read letter grade. All you have to do is enter a ticker in the WallStreetZen homepage and you’ll see the stock’s overall grade. The grades are A-F, with A being the highest (Strong Buy) … just like in school.<\/p>\n\n\n\n

The Zen Ratings model also lets you dig deeper through 7 Component Grades that reveal a stock’s specific strengths and weaknesses. For instance, let’s look at a recent addition to our Zen Investor portfolio, Emcor Group (NYSE: EME<\/a>)<\/strong>. <\/p>\n\n\n\n

At writing, the stock has an overall A (Strong Buy) rating. Great. But looking at the Component Grades reveals even more: <\/p>\n\n\n\n

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As you can see, EME rates highly for Financials<\/a> (a key sign that a company has solid financial footing). It also has an above-average rating for Sentiment, a factor which looks at things like analyst sentiment and insider buying activity to get the “smart money” vibe on a stock. Our proprietary AI component sifts through piles of data to detect subtle patterns that might not be evident to the average human; EME earns an above-average grade there, too. <\/p>\n\n\n\n

If you like the idea of stocks that have passed this 115-factor review but don’t feel like filtering through tickers yourself, our Zen Investor<\/a> portfolio does just that. It’s helmed by Steve Reitmeister, an investor with 40+ years of experience. He considers the Zen Ratings, but also puts each potential stock through a rigorous 4-step review process before adding it to the portfolio. <\/p>\n\n\n\n

And at just $79 for your first year, Zen Investor won’t put much of a dent in your $5 mil. In fact, it might even help you add to it. <\/p>\n\n\n\n

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Try Zen Investor today<\/a><\/div>\n<\/div>\n\n\n\n

2. Professional Money Management <\/strong><\/h2>\n\n\n\n

Even if you do some of your own stock-picking, $5 million is a lot of money \u2014 it’s well worth hiring a professional investment team to assist you with your financial goals.<\/p>\n\n\n\n

Investment advisors not only help you with your investments, but also advise on insurance, taxes, estate planning, savings goals, and more.<\/p>\n\n\n\n

Most investment advisors will charge a percentage of your investments to manage your finances, with some charging 1.5% or more. This can cost you tens of thousands per year.<\/p>\n\n\n\n

Platforms like Empower<\/a> offer wealth management services for high-net-worth individuals for a lower cost than most advisory services.<\/p>\n\n\n\n

With $5 million invested (or more), your fee is only 0.59% of assets under management, much lower than most advisors. Plus, you can access private equity investments and, and the advisors you work with are licensed fiduciaries. <\/p>\n\n\n

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Check out Empower<\/strong><\/a><\/div>\n<\/div>\n\n\n\n

3. Invest in <\/strong>Private Credit<\/h2>\n\n\n\n

With $5 million, you should probably diversify a bit.<\/p>\n\n\n\n

Here’s some good news \u2014 as a millionaire, you’re officially an accredited investor<\/a>. That means you have access to a variety of great (and potentially lucrative) asset classes. Let’s start with an exciting one: Private credit. <\/strong><\/p>\n\n\n\n

Once you have $5 million, you become the bank. Lending your money to private businesses and individuals can be a great way to potentially earn a high return.<\/p>\n\n\n\n

(Want to know more? Check out our post: What is Private Credit Investing?<\/a>)<\/p>\n\n\n\n

Private credit investments include loans and other debt financing to clients who are starting businesses, investing in real estate, or need funding to expand business operations. These investments offer a higher return than normal loans, with a yield of 10% or more in some cases.<\/p>\n\n\n\n

Percent <\/a>is an online platform that allows accredited investors (that includes you, if you\u2019ve got $5 million) to invest in private credit deals, including venture funding, corporate loans, and consumer loans, among other options.<\/p>\n\n\n

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On Percent, you can quickly peruse through deals to find investments you want to fund and build a portfolio of private credit deals with short or long durations. <\/p>\n\n\n\n

Alternatively, you can invest in a variety of notes across different asset classes and time horizons within a single investment with the Percent Blended Note<\/a>, one of their most popular offerings.<\/p>\n\n\n\n

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Regardless of what approach you take, you can get $500 off your first investment on Percent by using the links in this post. <\/p>\n\n\n\n

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Get $500 off your first investment on Percent<\/strong><\/a><\/div>\n<\/div>\n\n\n\n

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4. Invest in Fine Art <\/strong><\/h2>\n\n\n\n

If you\u2019re looking to diversify your investments outside of traditional markets, investing in fine art might be a good option. Fine art can appreciate over time, especially if you have a rare piece that is kept in pristine condition.<\/p>\n\n\n\n

As an alternative asset, art is also not correlated with the stock market and can continue to appreciate, regardless of what the market does.<\/p>\n\n\n\n

But while $5 million might be able to buy you some nice pieces, you won\u2019t be able to get a piece of Picasso or Banksy. Platforms like Masterworks<\/a> now make these pieces accessible, though, allowing you to invest in rare modern art for less.<\/p>\n\n\n\n

Instead of buying a $20 million piece of art outright, you can buy shares of ownership through the Masterworks platform and make a profit when the artwork sells.<\/p>\n\n\n\n

Masterworks owns hundreds of millions of dollars worth of contemporary art pieces and has realized annualized returns from 4% up to 77%. <\/p>\n\n\n\n

For example, investors were able to collect a 77.3% annualized net return in less than a year through an exited work offered by the fractional art investment platform Masterworks.  And while it\u2019s not guaranteed for Masterworks to exit so fast in the future, investors have recently secured 14.6%, 16.4%, and 17.6% annualized returns from other offerings. <\/p>\n\n\n

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There’s currently a waitlist to invest with Masterworks \u2014 but we’ve negotiated a deal with them so our readers can skip the waitlist with the link below. <\/p>\n\n\n\n

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Check out Masterworks<\/strong><\/a><\/div>\n<\/div>\n\n\n\n

5. Invest in Private Companies <\/strong><\/h2>\n\n\n\n

Investing in private companies has traditionally been off-limits to individual investors who don’t have insider access. But there are now innovative companies that allow you to invest in a private company directly through employees.<\/p>\n\n\n\n

Interested in investing in a company that hasn\u2019t gone public yet? Hiive<\/a> can give you access. It gives accredited investors the ability to become stakeholders in private, VC-backed companies.<\/p>\n\n\n\n

Hiive connects accredited investors who want a stake in private and\/or pre-IPO companies and employees, venture capital firms, or angel investors who want to sell shares. <\/p>\n\n\n\n

The platform is loaded with neat features. For instance, there\u2019s a live pricing chart for each company which includes prevailing bids and asks, and you can create watchlists and get notified about price changes or new listings offered. <\/p>\n\n\n\n

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Another interesting tidbit about Hiive: In 2023, 54% of accepted bids on Hiive were approved, 16% meet a buyer from cap table, 30% are blocked altogether (2023 report<\/a>)<\/p>\n\n\n\n

The bottom line? Hiive is one of the best ways to become an investor in private companies like Groq<\/a>, Anthropic<\/a>, and OpenAI<\/a>. <\/p>\n\n\n\n

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Check out Hiive<\/strong><\/a><\/div>\n<\/div>\n\n\n\n

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Any views expressed here do not necessarily reflect the views of Hiive Markets Limited (\u201cHiive\u201d) or any of its affiliates. This communication is for informational purposes only, and is not a recommendation, solicitation, or research report relating to any investment strategy or security. Investing in private securities is speculative, illiquid, and involves the risk of loss. Not all private companies will experience an IPO or other liquidity event; past performance does not guarantee future results. WallStreetZen is not affilated with Hiive and may be compensated for user activity resulting from readers clicking on Hiive affiliate links. Hiive Markets Limited, member FINRA\/SIPC.\r\n<\/div><\/div>\n\n\n

6. Invest in Real Estate <\/strong><\/h2>\n\n\n\n

Buying and holding rental real estate can help you grow your wealth, earn a steady cash flow, and reduce your taxes.<\/p>\n\n\n\n

With $5 million at your disposal, you have a lot of different options for investing in real estate. For example, you could buy a property (or multiple properties) and manage them. <\/p>\n\n\n\n

But that is time-consuming and can be a hassle. <\/p>\n\n\n\n

If you prefer your real estate investments to be a bit more passive, there are several excellent platforms to consider.<\/p>\n\n\n\n

EquityMultiple: For Accredited Investors Who Want Access to Commercial Real Estate <\/h4>\n\n\n\n

First up? EquityMultiple<\/a>, a crowdfunded real estate investment platform that gives accredited investors access to professionally-managed properties.<\/p>\n\n\n\n

On EquityMultiple, you can gain access to a variety of investing opportunities, including a mix of different property types and price points. You can also invest directly in commercial real estate deals. Minimums range by the investment, with many projects in the $5,000 to $30,000 range. <\/p>\n\n\n\n

As you can see from the below image, EquityMultiple’s stats are impressive \u2014 at writing, the platform reports $4.4 billion in project value, and the average historical returns are 17% \u2014 to put that in perspective, the historical average return of the S&P is just around 10%. <\/p>\n\n\n\n

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DLP Capital: For HNWIs Who Want to Increase Their Real Estate Exposure<\/h4>\n\n\n\n

IIf you’re a high-net-worth individual (HNWI) looking to invest seriously in real estate \u2014 without the hassle of owning property outright \u2014 DLP Capital<\/a> is another top-tier platform to consider.<\/p>\n\n\n\n

With a $200K minimum investment, your first question is probably: Is DLP legit?<\/em> The answer is yes. Founded in 2006, DLP Capital is not a flashy newcomer but a well-established firm with a proven track record. It manages over $5.25 billion in assets and 18,000 housing units, serving thousands of investors.<\/p>\n\n\n\n

DLP Capital caters to affluent investors, providing access to multiple real estate funds designed for different strategies and objectives:<\/p>\n\n\n\n