How I Helped a $5M+ Investor Stop Chasing Growth

Years ago, I used to think hitting $5 million in net worth would mean you could finally coast… after grinding through risky value-add real estate deals, scaling rentals, and syndicating properties across the country. But the truth is, we’ve entered a new era—kind of like when Marvel ended the Infinity Saga with Iron Man’s snap. That chapter of hyper-growth is over. The Fed isn’t bringing rates back under 3% in our lifetime, and real estate isn’t the same game it was in the 2010s. If you’re still operating like it is, you might be swimming against the current... sorry. But if you are an accredited investor in terms of net worth then consider a different directions.

I had 11 rentals, syndication investments, and a decent-size stock portfolio. But my stress levels were still high—and my tax bill even higher.

This is the part most investors don’t talk about. The moment when you’ve “won the game” financially… but your portfolio still behaves like you’re hustling for your first million.

The Shift No One Talks About at $5M+

I call this the Penthouse Shift inside the Wealth Elevator community.

It’s when an investor moves from “accumulation” mode to preservation and passive income. From chasing 20% IRRs to prioritizing 7–10% yield that’s simple, tax-efficient, and sustainable.

One client of mine, a former tech executive, had:

• $2.5M in a taxable brokerage account

• $1.8M in paid-off real estate

• $700K in idle cash

He didn’t need more upside. He needed consistency—cash flow he could count on without triggering taxes or creating more work.

The Strategy We Used: Staking Capital for Yield

Here’s how we repositioned his portfolio:

1. Preferred Equity in Real Estate Syndications

He allocated $500K into three stabilized workforce housing deals—earning 10% fixed returns with depreciation. He became the lender, not the landlord.

2. Infinite Banking (Whole Life Policy)

We structured a policy that grows at 5–6% tax-free and gave him the option to borrow against it. This became his “liquidity layer” instead of idle cash.

3. Securities-Backed Line of Credit (SBLOC)

Rather than sell appreciated stocks and pay capital gains, we used a 4.5% line of credit against his portfolio to fund a short-term investment opportunity. No tax triggered.

4. Muni Bond Closed-End Funds (CEFs)

To round it out, we parked $400K in high-yield muni CEFs earning ~5.5% tax-free, which is equivalent to 8.7% pre-tax in his bracket.

Lessons Learned: What Most Investors Miss at This Stage

Here are three common mistakes I see with $5M+ investors:

• Still operating like they’re in growth mode: They chase aggressive flips or high-risk deals when they could live off stable yield.

• Holding too much dead equity: Paid-off rentals are safe, sure—but they’re also lazy if they’re only cash-flowing at 3–4%.

• Paying avoidable taxes: Between passive losses, infinite banking, and muni bonds, there are legal ways to reduce taxable income dramatically.

Final Thought: Let Your Assets Do the Walking

At this level, the goal isn’t just financial freedom—it’s ease.

I’m not here to impress people at cocktail parties anymore. I’m here to build a family endowment that pays my lifestyle and protects my time.

This is something I also touch on in my book, The Wealth Elevator, where I break down the passive investing journey floor by floor.