Turning 50 is a financial milestone. At this stage of life, it’s no longer just about ambition and hard work—it’s about financial security, consistency, and wealth preservation.
The investments you hold by this age often determine the kind of lifestyle you’ll enjoy in your 50s, 60s, and beyond.
In today’s fast-paced, unpredictable economy, building the right mix of investment portfolios before 50 is more crucial than ever.
For individuals living in emerging markets like Nigeria—or even in advanced economies—the same rule applies: you must spread your financial eggs across different baskets.
This article explores five major investment portfolios every individual should seriously consider before turning 50. These investments offer a balance of growth, income, liquidity, and security, helping you build a strong foundation for retirement and financial independence.
1. Real Estate Portfolio
Real estate is one of the oldest and most reliable forms of wealth generation. It has built generational wealth for centuries and remains a solid long-term asset.
Why Real Estate?
The value of land and property generally appreciates over time. Even when other markets dip, real estate often retains or even gains value, especially in urban or fast-developing areas.
A diversified real estate portfolio should ideally include:
- Residential properties (e.g., rental apartments)
- Commercial spaces (e.g., shops or office buildings)
- Undeveloped land (land banking)
- Real Estate Investment Trusts (REITs)
In Nigeria, cities like Lagos, Abuja, Ibadan, and Port Harcourt offer lucrative real estate opportunities, especially in emerging corridors like Lekki-Epe, Ibeju-Lekki, and Ajah.
Pros of Real Estate:
- Passive rental income
- Long-term capital appreciation
- Tangible and inflation-resistant asset
- Excellent for generational wealth transfer
Cons:
- High entry cost
- Maintenance and tenant management challenges
- Liquidity limitations
Still, it remains one of the safest forms of investment when properly managed or outsourced.
2. Stock and Equity Investments
The stock market is where money grows in leaps—if you understand it or are willing to learn. By the time you’re approaching 50, you should have some exposure to stocks and equities to allow your money to work harder than it would in a savings account.
Why Stocks?
Equities provide higher returns over the long term compared to most other asset classes. While they come with risks, these risks can be managed through diversification, knowledge, and time in the market.
Where to Invest:
- Nigerian Stock Exchange (e.g., GTCO, Zenith, Nestle, Dangote Cement)
- International markets via apps like Bamboo, Risevest, or Trove
- Exchange-Traded Funds (ETFs)—low-cost diversified exposure
- Mutual Funds—for those who prefer professional management
Benefits of Stock Investments:
- Potential for massive capital growth
- Dividends provide recurring income
- Easily liquidated during emergencies
- Allows for global diversification
Risks:
- Market volatility
- Requires some financial literacy or advice
- Emotional investing can lead to losses
The key is consistency—investing monthly or quarterly—and long-term focus rather than chasing trends or timing the market.
Related Article: 10 Must-Know Factors to Evaluate Before Buying Any Company’s Shares: The Smart Investor’s Ultimate Checklist
3. Pension and Retirement Accounts
You cannot talk about preparing for age 50 without mentioning retirement accounts. Regardless of your career or entrepreneurial status, retirement planning is non-negotiable.
Why Pension and Retirement Investments?
These are typically long-term investments designed specifically to support your financial needs when you’re no longer actively working. If properly structured, they ensure you never have to depend on your children or relatives for survival.
Options Available:
- Formal pension schemes (like Nigeria’s PENCOM-regulated Retirement Savings Accounts)
- Voluntary contributions for self-employed individuals
- Employer-matched pension contributions
- Personal retirement plans and annuities
By law in Nigeria, employees contribute a portion of their income to pension funds through PFAs (Pension Fund Administrators), and employers match this amount. Even if you’re self-employed, you can still open a micro pension account and make voluntary contributions.
Benefits:
- Long-term security
- Compound interest growth
- Tax advantages in some jurisdictions
- Regulated and managed for safety
Limitations:
- Low liquidity (funds are generally locked till retirement age)
- Sometimes conservative returns
Regardless, this portfolio serves as a safety net that should not be ignored.
4. Fixed Income Instruments
Every solid investment plan needs a risk buffer. Fixed-income investments offer predictable, stable returns, perfect as you approach your 50s and want to minimize high-risk exposure.
Why Fixed Income?
Unlike stocks, fixed-income instruments like bonds and treasury bills offer regular interest payments and are generally less volatile. This is particularly useful for income planning in your 50s and 60s.
Common Fixed Income Options:
- Treasury Bills (T-Bills)
- Federal Government Bonds (FGN Bonds)
- State Bonds and Sukuk
- Corporate Bonds
- Eurobonds (for those interested in foreign currency exposure)
Apps like Cowrywise, PiggyVest, and your bank’s investment arm offer access to these.
Pros:
- Capital preservation
- Fixed returns
- Government-backed securities are relatively safe
- Good for portfolio balance and diversification
Cons:
- Returns may be lower than equities
- Interest income can be eroded by inflation
- Some have long lock-in periods
Still, they’re great for individuals who want stability and predictable cash flow as they grow older.
5. Alternative Investments and Business Equity
This is where things get exciting—but also riskier. As you build financial stability through traditional portfolios, it’s also wise to explore alternative investment options that offer higher yields and diversification.
What Are Alternative Investments?
These are non-traditional assets that can include:
- Startup equity or angel investing
- Agriculture or commodity-based investments
- Cryptocurrency and blockchain projects
- Gold or precious metals
- Your own business or partner equity
Why Include Alternatives?
These assets provide a hedge against market cycles and can deliver outsized returns when chosen wisely. For instance, investing early in a promising startup or agritech platform can yield significant returns over time.
Also Read: Top 10 Investment Pointers for Spotting Profitable Business Opportunities
Examples in Nigeria:
- Investing in startups through platforms like GetEquity or Nigeria’s tech hubs
- Agritech platforms like ThriveAgric and FarmCrowdy (though due diligence is a must)
- Owning part of a growing small business or cooperative
- Crypto platforms like Binance or Quidax (exercise caution and limit exposure)
Pros:
- High growth potential
- Portfolio diversification
- Entry into emerging industries
Cons:
- High risk and potential for loss
- Limited regulation
- Illiquidity or delays in returns
You should allocate no more than 10–15% of your total investments here, unless you’re highly experienced or have backup cash flows.
Practical Portfolio Allocation Example
Here’s how a 45-year-old professional with a moderate risk tolerance might structure a ₦10 million investment:
| Investment Type | Allocation | Amount (₦) |
|---|---|---|
| Real Estate | 30% | ₦3,000,000 |
| Stocks & Equities | 25% | ₦2,500,000 |
| Pension/Retirement Funds | 15% | ₦1,500,000 |
| Fixed Income | 20% | ₦2,000,000 |
| Alternatives/Business Eq. | 10% | ₦1,000,000 |
This structure ensures a good mix of growth, security, income, and diversification.
Conclusion
Approaching 50 is not a time for financial panic—it’s a time for consolidation. You may have already made money, but now the goal is to keep it, grow it steadily, and make it work for you.
A sound investment portfolio covering real estate, equities, pensions, fixed income, and alternatives is essential to achieving that goal.
These investments, if started early and nurtured, will help you:
- Maintain your lifestyle post-retirement
- Avoid being dependent on others
- Fund your children’s education or your next passion project
- Leave behind a legacy
It’s never too early—or too late—to start. But by 50, you’ll want these portfolios not just as plans, but as realities.
