My friend has just about $1 million (inherited) in cash (well, it's being managed by a money manager right now, so it is being invested in I believe index funds and bonds, but it could become cash quickly).
He's in his early 30s. Good job-- $125k/year or so in bay area. Not a hacker, but generally interested in computers. No family yet. He is somewhat risk-averse, however.
The question: what should he be doing with his money?
Maybe take $20,000 out and put it into a brokerage account and start learning to trade with it. IF and only if he's able to successfully trade that $20K and turn it into $40K or more, over a 2 year period then should he even attempt to trade with larger amounts. You need the discipline, and the experience of being wrong to truly understand money management.
If he's risk-averse, he probably has little experience with investing, so the money is probably fine where it is.
Being risk-averse and getting a 10 year income windfall really says to me, fucking live it up. You can retire on that in some countries, keep and orchard and live like a king.
Personally I'd buy a small estate in a nice part of a shitty country with decent prospects for getting back and forth to the states. I'd look to buy things that are simultaneously fun/useful and investments. I would definitely quit my job unless i loved it and spend years and a couple hundred k figuring out how to make a living what I love doing.