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Guide to Managing Assets

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Guide to Managing Assets

Independent Financial Advisor and Co-Founder of Affari Miei

February 20, 2024

Two 2 million euros and are you wondering how to invest them? Well, you are in the right place. Today I’ll walk you through a complete strategy for invest 2 million euros effectively and safely.

This article talks about:

Having 2 Million Euros: A “Good Problem”, Eh?

Smile, I know. “What a problem to have 2 million euros!“, you will say. And you’re partly right.

If you find yourself wondering how to invest such a considerable sum, you are undoubtedly in a privileged position. Not everyone can boast such a heritage. But be careful, don’t be fooled.

Many will read these lines out of pure curiosity, thinking that they have 2 millions just be a blessing.

Yet, managing such a large sum is anything but simple. Problems don’t take long to arrive: the fear of making a false step, the anxiety of having to make important decisions, the frenzy of wanting to “do something” can lead you to make rash choices and, ultimately, to losses significant.

So, if you’re wondering how to invest 2 million euros, keep reading. This guide is made just for you and to help you navigate these complex waters.

First Objective: Don’t Lose Money

Having a figure like 2 million euros catapults you into a reality that perhaps you have never known. And this is especially true if you got this sum suddenly. Maybe you inherited it, or you sold your company, or you got lucky with the lottery.

In these cases, asset management becomes a minefield. Why? Why theanxiety and the frenzy of “having to do something” with that money comes over you. And if you let yourself get caught up in these emotions, I guarantee you, you will make mistakes that will cost you dearly.

I guarantee you: think that according to the annual CONSOB report 36% of Italian investors suffer from financial anxiety linked to the management of one’s assets.

Imagine: 2 million euros could be the achievement of a lifetime for many. Managed well, this figure could supplement your income and perhaps allow you to live on the fat of the land.

But be careful, it’s not as simple as it seems.

The first thing you do when you find yourself with 2 million in your hand? Raise the standard of living, Right? You think about all the things you can now afford that were previously out of reach.

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And therein lies the danger: Money can evaporate faster than you imagine. A luxury home, a sports car, and before you know it, your wealth is already drastically reduced.

So, my first and most important piece of advice is this: Don’t lose money. Before making any move, take a deep breath and think, because a rash decision today could ruin your financial tomorrow.

Don’t know how to invest?

Find out what kind of investor you are. Are enough 3 minutes to discover the best strategy for you.


Retirement Planning: Don’t Neglect It

Now, let’s think about the future. Does retirement seem far away? Maybe it is, but with 2 million euros you can do a lot to guarantee yourself a peaceful future.

Ecco three reasons so as not to ignore this aspect even with two million in your pocket:

Work and assets, two different paths: if you continue to work, the private supplementary pension remains a crucial issue. It is essential to separate your new and large assets from the income that comes from your job. They are two parallel tracks that should never cross without a valid reason;
Watch out for traps: With 2 million euros, you might be tempted to do things like redeem your degree or voluntary contributions. Seems like a small investment compared to your newfound wealth, right? But be careful, don’t let yourself be dazzled. Carefully consider whether these moves are truly beneficial for you. Otherwise, you risk wasting precious resources on unprofitable initiatives;
Supplementary pension: yes, but with caution. You have the option to set aside the severance pay or to direct any bonuses from the employer towards private pensions? Fine, but proceed with caution. You may be tempted to put a significant portion of your assets into a pension fund. But remember, if you plan to stop working before retirement age, tying up such a large amount may not be the smartest move. You would have to wait until you meet your pension requirements to access those funds.

Asset Allocation: how to diversify?

With 2 million euros, the options are practically there infinite.

Do you want to invest in stocks? You can do it. Interested in start-ups? That too is possible.

The important is diversification and don’t put all your eggs in one basket, as they say.

Investment in Single Shares: with 2 million available, theinvestment in shares singles becomes an interesting option. Unlike with more limited assets, where we recommend avoiding this strategy, with such a large amount you can diversify effectively. For example, you could allocate €150,000 to buying specific stocks without worrying about the diversification problems you would have with a smaller budget;
The “bets” on Start-ups: With such a large fortune, you can afford to take a little risk by investing in promising start-ups. You could allocate a small portion of your wealth to these high-risk, high-reward opportunities, knowing that you still have your back covered.

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The key points of the investment are basically universal and apply to any amount:

Age: the younger you are, the more time you have to invest and take risks. With age, however, the tendency is to consolidate assets through safer investments;
Time horizon: If you have many years to go before you need an income, you can opt for riskier investments. If, however, you have a shorter time horizon, your asset allocation it will be more conservative;
Risk Propensity: This is a mix of your psychological tolerance for losses and your experience with investing. If you are new to the financial markets, you will probably be more cautious; if you have experience, you may be more inclined to take calculated risks.

Succession Planning: Think Now, Not Tomorrow

If you have a family, or simply people you care about, it’s time to think about succession planning. A will and accurate tax planning can make the difference between a smooth transition and one full of obstacles.

Living on Income: a concrete reality?

Living on an income is the dream of many, but be careful: it is not as simple as it seems: to do it, you have to make sure that your income is greater than your expenses. And I’m not just talking about numbers, but about lifestyleof daily choices that can affect your financial future.

The topic is explored in depth in this articlehere I bring you some key considerations.

Age and Time: Crucial Factors

If you are younger, the challenge of living off your income intensifies. You will have to make that annuity last for a potentially very long period of time. On the contrary, if time is on your side and you already have solid capital, the prospects are more reassuring.

The 4% Rule: a basis from which to think?

One of the most solid theories in this area is the “4% rule“. Basically, if you withdraw 4% of your starting capital every year, you should be able to maintain your lifestyle for about 30 years. So, with €2 million, you are looking at an annual gross withdrawal of €80,000.

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Many scholars have recently begun to recommend a more conservative approach because life is getting longer and the number of young millionaires, due to the generational transition underway between old and new generations, is increasing.

Therefore it might be wiser to withdraw 3% per year, therefore €60,000.

Help yourself with financial education

After exploring the goals and strategies for investing such a considerable amount, it’s time to think about how to best manage it.

My most sincere suggestion? Don’t face this challenge alone.

Often, those who find themselves with such a large fortune are faced with a significant event, whether it is the sale of a company, a large win or, unfortunately, an inheritance. In many cases, these are people who are not used to managing such large sums. This is why it is essential to get assistance.

But how? Our mantra on Affari Miei has always beenfinancial education. Knowing the financial mechanisms allows you to make more informed and conscious decisions. If you don’t have the time or desire to invest in this training, there is an alternative: the financial advice.

And here, the key word is “independence”. A bank consultant will always have an eye on the products of his institution, so his advice will inevitably be partial. An independent financial advisor, on the other hand, will provide you with advice that is not influenced by any factors other than your financial well-being.


I hope I have been able to provide you with useful information to begin taking your first steps in managing your assets.

My advice, as you will have understood, is to focus on knowledge and on the training without getting caught up in the anxiety of having to act immediately.

If you want to learn more about Affari Miei, Here you will find our innovative approach to managing your assets explained in 5 key points. I recommend this read, it’s really worth it.

See you soon!

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