A 74-year-old with $10M asks what to do. The answer is not what you think

A 74-year-old single retiree with $10 million in liquid assets, a paid-off home, and an SUV with no outstanding debt is asking a question that sounds like a dream but is actually a strategic puzzle: What should I do with all this money? The person, who wrote to MarketWatch's Moneyist column, says their main goal is to help people. That goal, combined with a net worth that puts them in the top 1% of American households, creates a decision that is less about survival and more about legacy, tax efficiency, and the mechanics of giving money away well.

The first thing to understand is the scale. $10 million is not just a comfortable retirement fund; it is generational wealth. According to Federal Reserve data, the median net worth of American households is around $192,000, and even the top 10% of households by net worth typically hold less than $1.5 million. A $10 million portfolio, even in a conservative 60/40 stock-bond allocation, can generate $300,000 to $400,000 per year in income without touching the principal. At age 74, with no debt and a paid-off home, the person's personal expenses are likely covered by Social Security and a small fraction of that income. The real question is not whether they can afford to give money away, but how to do it in a way that maximizes impact and minimizes taxes.

The tax angle is where the decision gets interesting. For a retiree with $10 million, the difference between giving cash and giving appreciated assets can be enormous. If the money is in a taxable brokerage account, donating appreciated stock directly to a charity avoids capital gains tax and provides a deduction for the full fair market value. Donating cash, by contrast, only provides a deduction and does nothing to avoid the capital gains that would be triggered if the person sold the stock to fund the gift. For someone with a portfolio that has grown significantly over decades, the unrealized capital gains could easily be in the millions. Giving appreciated assets is one of the most tax-efficient moves in philanthropy, and it is a move that many wealthy retirees overlook.

Another option that financial advisors often recommend for wealthy retirees is a donor-advised fund, or DAF. A DAF allows the donor to contribute assets, receive an immediate tax deduction, and then recommend grants to charities over time. This is particularly useful for someone who wants to help people but has not yet decided exactly which causes to support. The donor can take the tax deduction in a high-income year, invest the funds tax-free, and then distribute the money to charities over years or even decades. For a 74-year-old with $10 million, a DAF can also be a way to involve family members in giving, creating a philanthropic legacy that outlives the donor.

There is also the question of how much to give and when. The IRS allows individuals to deduct charitable contributions up to 60% of their adjusted gross income for cash gifts and 30% for appreciated assets, with unused deductions carried forward for up to five years. For a retiree with $10 million, this means that a large gift in a single year may not be fully deductible in that year, but the carryforward can spread the tax benefit over several years. This is a critical detail for anyone planning a major gift, because the tax benefit is not lost, just deferred. A financial advisor or tax professional can help structure the gift to maximize the deduction over time.

Beyond the mechanics, there is a deeper strategic question that the Moneyist column touches on: how to balance generosity with personal security. Even with $10 million, a 74-year-old faces longevity risk, healthcare costs, and the possibility of needing long-term care. The average annual cost of a private nursing home room in the United States is over $100,000, and a prolonged stay can eat into even a substantial portfolio. The person's goal to help people is admirable, but the advisors' response is likely to emphasize that they should first ensure their own needs are covered for the next 20 to 30 years, and then give from the surplus. This is not selfish; it is prudent. A donor who runs out of money becomes a burden on the very people they wanted to help.

The column also highlights a psychological dynamic that is common among wealthy retirees: the desire to find meaning and purpose after a lifetime of work. Money is a tool, and for someone with $10 million, the tool is large enough to make a real difference in the world. But the decision of how to use it is not just financial; it is emotional and philosophical. The person says their main goal is to help people, and that goal can be achieved in many ways, from direct donations to establishing a charitable foundation to supporting a cause they care about deeply. The key is to align the giving with their values and to do it in a way that is sustainable and tax-efficient.

For executives and wealthy individuals in similar positions, the lesson is clear: a large portfolio is not just a number, it is a responsibility. The decision of what to do with $10 million is not about whether to give, but how to give effectively. The most sophisticated approach involves a combination of tax strategy, estate planning, and a clear understanding of personal spending needs. A donor-advised fund, appreciated stock donations, and a careful analysis of the 60% deduction limit are all tools that can turn a generous impulse into a lasting legacy. The 74-year-old in the column has a rare opportunity, and the answer to their question is not a single investment or a single donation, but a thoughtful plan that balances generosity with security.

Ultimately, the Moneyist column is a reminder that wealth is not just about accumulation; it is about deployment. For a 74-year-old with $10 million and no debt, the biggest risk is not running out of money, but failing to use it in a way that creates the impact they want. The advisors' advice, which the column does not fully spell out but strongly implies, is to work with a professional to structure the giving, take advantage of tax breaks, and ensure that the donor's own needs are met first. The goal to help people is noble, and with the right plan, it is entirely achievable.