Aside from the risk of theft/fire etc, you're also running the risk of rampant inflation. You should have a variety of investments in different economies. If $bad_politician gets in and turns the US dollar into the Bolivar, your 10m will be worthless. If you've got 20% invested in other countries you're running a much smaller risk, likewise with investments in other assets
Don't put all your eggs in one basket, don't put all your files on one raid, and don't put all your assets under the mattress.
It gives you a great safety net. It lets you speculate in the great game. 9 in 10 ideas will fail, but that's ok as you won't end on the streets.
Those without the safety net have far more to risk, so are far less likely to succeed. For every richard Branson who starts up a company from the back of their van there's 9 who do that and fail, and are currently on minimum wage stacking shelves. For every millionaire actor there's a thousand waiting tables. For every musician there's 100 teachers. Very little to do with how good they are, all to do with the lucky break.
Hell where your parents live makes a massive difference. When you start out with a job in the big city, you either live rent free with parents and thus save £10-15k a year, or you put your entire wage to paying bills.
After 5 years you have 70k, enough for a confortable deposit on a house, or a few years of speculation, or investments that will grow to half a million by retirement.
If your parents don't live close to where you start your career you're far more hand to mouth.
Great for the long run, but they also have bad years. Global index funds also gave net 0% in the interval 2006 to 2012, since the financial crisis hit there.
Weighed up by good years giving far more than 7%, but one needs to have time.
You have to consider that not that few expenses can wait. Think of the new paint on the walls, or the new floor on the staircase. Or the new table, etc.
Worst case you'll be stuck in a minimum-wage like lifestyle. Best case you're on your yacht in the Caribbean.
$10m, sure, you should be able to net $200k while still topping up your fund to cope with inflation, so you'd be well off.
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