portman makes a good point. Usually, targeting returns is kind of a sucker's game. That's not to say that it is impossible to achieve the kinds of returns you

portman makes a good point. Usually, targeting returns is kind of a sucker's game. That's not to say that it is impossible to achieve the kinds of returns you are looking for, but rather that it creates a mindset that ignores risk. The poster should first try to think of his $5M as money that stands to decline in value as the frictional forces of inflation approach. The goal here should not be so much targeting 5% returns but at least initially, preserving that $5M. It's not as simple as parking money into gold either, because gold itself fluctuates based on when you buy it. Yes, people have lost money by purchasing gold in the past, at the wrong times. TIPS aren't great either, because the calculations used by the government often understate inflation. So to me, when I see questions like this I often advocate scrutinizing the individual's current personal finances and then doing like portman says with projecting goals and expenses. Then, you look at investing and target how to invest with the appropriate time horizon.