AltStreet
Investment Strategy Guide

How to Invest Money:
Capital-Specific Strategies

Your investment strategy should evolve with your capital. Learn how to optimize allocation, diversification, and tax efficiency whether you're investing $100K or $10M+. Each guide covers example platform types, product structures (ETFs, SMAs, private placements), and institutional-style frameworks you can adapt with your own advisors.

Designed for investors who already understand basics like stocks, bonds, and ETFs, and want to apply more institutional-style frameworks to their own capital.

Investment Evolution by Capital Level

As your portfolio grows, your strategy should become more sophisticated

Foundation

$0-$100K

Tax-advantaged accounts & index funds

90% stocks / 10% bonds

Growth

$100K-$500K

Diversification & first alternatives

70% stocks / 20% alts / 10% bonds

Sophistication

$500K-$2M

Private placements & tax optimization

50% stocks / 35% alts / 15% fixed

Preservation

$2M+

Estate planning & family office

30% stocks / 50% alts / 20% cash & fixed income

Investment Guides by Capital Amount

Choose your guide based on how much you're looking to invest. Return ranges shown are illustrative based on historical data and common allocation frameworks, not guarantees of future performance.

$100,000

How to Invest $100,000

Your first six-figure portfolio. Build a diversified foundation across index funds, bonds, and your first alternative investments.

Maxing out tax-advantaged accounts (401k, IRA, HSA) is often a priority
Example allocation: 70–80% broad market index funds
15–20% bond allocation for stability
5–10% in accessible alternatives (platforms like Fundrise, Yieldstreet)
Illustrative Return Range
7–9% annually (illustrative, not guaranteed)
Risk Profile
Moderate
Time Horizon
10+ years recommended
$250,000

How to Invest $250,000

Transition from passive indexing to active allocation. Add real estate, private credit, and tax-loss harvesting strategies.

60–70% equities with factor tilts (value, small-cap)
15–20% alternative assets (real estate, private credit)
10–15% fixed income (munis for high earners)
Many investors aim to implement tax-loss harvesting systematically
Illustrative Return Range
8–10% annually (illustrative, not guaranteed)
Risk Profile
Moderate-Aggressive
Time Horizon
10+ years recommended
$500,000

How to Invest $500,000

Accredited investor strategies. Access private placements, direct real estate deals, and institutional-quality alternatives.

50–60% public equities (consider direct indexing)
20–30% alternative investments across 3–5 categories
10–15% private credit (often targeting 8–12% yields)
Open self-directed IRA for alternative exposure
Illustrative Return Range
9–12% annually (illustrative, not guaranteed)
Risk Profile
Aggressive
Time Horizon
7+ years recommended
$1,000,000

How to Invest $1 Million

Seven-figure portfolio management. Implement sophisticated tax strategies, concentrate in alternatives, and consider direct deals.

40–50% public equities (tax-managed separately)
30–40% alternatives (PE, credit, real assets)
Consider Opportunity Zone funds for tax deferral
Evaluate direct co-investments and SPVs
Illustrative Return Range
10–14% annually (illustrative, not guaranteed)
Risk Profile
Aggressive
Time Horizon
7+ years recommended
$2,000,000+

How to Invest $2M-$5M

Multi-million dollar allocation strategies. Shift from accumulation to preservation with estate planning and family office structures.

30–40% equities (individual stocks or concentrated funds)
40–50% alternatives across 5–8 uncorrelated strategies
Establish family limited partnerships or trusts
Consider captive insurance or private foundations
Illustrative Return Range
9–13% annually (illustrative, not guaranteed)
Risk Profile
Moderate (preservation focus)
Time Horizon
5+ years recommended
$10,000,000+

How to Invest $10M+ (UHNW)

Ultra-high-net-worth strategies. Family office allocation, direct private equity, venture capital, and multi-generational wealth transfer.

20–30% liquid public markets (separately managed accounts)
50–60% alternatives (PE, VC, hedge funds, real assets)
Multi-generational estate planning with dynasty trusts
Direct co-investments and single-family office structures
Illustrative Return Range
8–12% annually (illustrative, not guaranteed)
Risk Profile
Custom (preservation + opportunistic)
Time Horizon
10+ years / generational

5 Costly Investment Mistakes to Avoid

Learn from what separates successful investors from struggling ones

Trying to time the market

Solution:

Many successful investors use dollar-cost averaging and maintain consistent allocation regardless of market conditions. Time in the market typically beats timing the market.

Ignoring tax implications

Solution:

Tax-aware investors often optimize asset location (alts in IRAs, munis in taxable), harvest losses systematically, and consider tax-advantaged structures like QOFs.

Over-concentrating in one asset class

Solution:

True diversification requires low correlation between holdings. Many sophisticated portfolios add alternatives that zig when stocks zag (e.g., litigation finance, farmland).

Paying excessive fees

Solution:

Many cost-conscious investors aim to keep total costs under ~1%, using low-cost index funds for public markets (0.03–0.15% for core holdings), negotiating GP fees on private deals, and avoiding loaded mutual funds.

Neglecting rebalancing

Solution:

Common practice is to rebalance annually or when allocations drift 5%+. Rebalancing forces you to sell high and buy low systematically.

Ready to Add Alternatives to Your Portfolio?

Explore 18 alternative asset classes used by institutional investors to enhance diversification and generate uncorrelated returns

Explore Alternative AssetsCompare Investment Platforms

Frequently Asked Questions

Expert answers about investing strategies by capital amount

What's the best investment for $100,000?+
For many investors, a diversified portfolio built primarily from low-cost index funds (such as broad-market U.S. and international equity funds), complemented by a smaller allocation to bonds and, in some cases, a modest slice of alternatives, often provides a good balance of risk and return. Max out tax-advantaged accounts first (401k up to employer match, then Roth IRA, then additional 401k contributions). Consider adding fractional real estate through platforms like Fundrise or private credit through Yieldstreet once you have a core equity/bond foundation.
How should investment strategy change as wealth increases?+
As portfolios grow from $100K to $1M+, many high-net-worth investors choose to: (1) increase alternative asset allocations from 5% to 30-40% for enhanced diversification, (2) shift from generic index funds to tax-optimized separately managed accounts, (3) add private placements and direct deals unavailable to smaller investors, (4) implement sophisticated tax strategies like Opportunity Zones and QOFs, and (5) transition focus from growth to preservation with estate planning and trusts.
How do investors typically allocate to alternative investments?+
Allocation to alternatives often scales with portfolio size and investor experience. Some common ranges used in practice include: 0–5% for portfolios under $100K (limited access), 5–15% for $100K–$500K (via platforms), 20–30% for $500K–$2M (private placements), 30–40% for $2M–$10M (direct deals), and 40–60% for some $10M+ UHNW portfolios (institutional-style strategies). These ranges are illustrative only and not recommendations; any allocation should match your liquidity needs, risk tolerance, and overall plan.
When should I hire a financial advisor?+
Consider professional advice when: you have $500K+ to invest (access to better advisors and lower percentage fees), you're navigating a liquidity event (business sale, inheritance, IPO), your tax situation is complex (multiple states, international assets, trusts), or you lack time/expertise for active management. Many investors prefer fee-only fiduciary advisors charging around 0.5-1.0% of assets under management, rather than commission-based models, to better align incentives. For portfolios under $500K, robo-advisors or self-management often provide better value.
How do I invest for both growth and income?+
Balance growth and income through strategic allocation: growth-oriented equities (50-60%), dividend aristocrats and preferred stock (15-20% for 3-4% yield), REITs and real estate crowdfunding (10-15% for 5-7% distributions), private credit (10-15%, often targeting 8-12% yields), and opportunistic alternatives like royalties or revenue-based financing (5-10%). This creates a blended 4-6% current yield while maintaining long-term appreciation potential.
What investment minimums exist for different strategies?+
Minimums vary significantly: public market ETFs ($1 minimum), fractional real estate platforms like Fundrise ($10-$500), private credit platforms ($1,000-$5,000), accredited investor funds ($25,000-$50,000), private equity funds ($100,000-$250,000), and direct private investments or co-investments ($250,000-$1M+). Your accessible investment universe expands dramatically at the $500K and $1M+ levels.

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Investment Disclaimer: This content is for informational purposes only and should not be construed as personalized investment advice. Investment strategies should be tailored to individual circumstances, risk tolerance, and financial goals. Past performance does not guarantee future results. Alternative investments involve substantial risks including illiquidity and potential loss of principal. Consult with qualified financial, legal, and tax professionals before making investment decisions. AltStreet is not a registered investment advisor.