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Investment Strategies for Different Life Stages

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Investing is a journey that evolves as you progress through various stages of life. Each stage has distinct financial priorities, goals, and risk tolerances, requiring tailored investment strategies to ensure long-term economic success. Whether you are just stepping into adulthood, entering your mid-career phase, or preparing for retirement, aligning your investment approach with your current life stage is essential for building and preserving wealth.

Early Adulthood (Ages 18–30): Setting the Foundation for Growth

The early adulthood is marked by fresh beginnings—completing education, starting a career, and becoming financially independent. During this stage, individuals typically have a long investment horizon, which allows them to take on more risk.

At this age, the primary focus should be on building a solid financial foundation. Start by creating a budget that prioritizes saving, paying off high-interest debt, and setting up an emergency fund to cover unexpected expenses. Once these essentials are in place, begin exploring investment opportunities that offer growth potential over time.

Key Strategies:

  • Invest in Stocks: With decades ahead of you, investing in equities can provide the high returns needed to grow your wealth over the long term. Consider contributing to individual stocks or low-cost index funds.
  • Start Retirement Savings Early: Take full advantage of employer-sponsored retirement plans and contribute enough to get any matching benefits. If available, open an IRA (Individual Retirement Account) to diversify your retirement savings.
  • Take Risks: This is the time to be more aggressive in your portfolio choices since your long-time horizon allows you to recover from market downturns.
  • Invest in Yourself: Beyond financial markets, investing in education, skills, and personal development can have long-lasting benefits for your earning potential.

By setting the groundwork for your financial future in your twenties, you can capitalize on compounding growth and set up habits that will help you in the years to come.

Midlife (Ages 30–45): Balancing Growth with Responsibilities

As you move into your 30s and 40s, your financial responsibilities typically increase, especially if you are buying a home, supporting a family, or advancing in your career. While it is still important to focus on growing your wealth, you also need to balance growth with more stability as your obligations expand.

In this stage, you may have more disposable income, but it is essential to keep financial discipline and avoid lifestyle inflation, which can derail long-term goals. Your investment strategy should now include more diversification to protect against market volatility while continuing to build wealth.

Key Strategies:

  • Diversify Your Portfolio: In addition to stocks, consider distributing part of your portfolio to bonds, real estate, or dividend-paying stocks. A balanced portfolio can provide growth while reducing risk exposure.
  • Increase Retirement Contributions: As your income increases, try to max out contributions to retirement accounts. This is also a suitable time to consider diversifying into other tax-efficient investment vehicles, such as Health Savings Accounts (HSAs) or brokerage accounts.
  • Plan for Education Expenses: If you have children or plan to in the future, start saving for education costs through savings plans or other investment vehicles.
  • Protect Your Assets: Ensure you have adequate insurance coverage, including health, life, and disability insurance, to safeguard your financial well-being.

Balancing wealth accumulation with stability during this period will set the stage for a secure financial future as your career peaks and family responsibilities grow.

Late Career (Ages 45–60): Shifting Toward Preservation and Income

In your late 40s and 50s, retirement is no longer a distant concept—it is an impending reality. During this stage, you should begin shifting your investment strategy from aggressive growth to a more balanced approach that prioritizes wealth preservation and income generation.

This is also the time to carefully review your retirement savings and evaluate whether your current strategy will allow you to meet your post-retirement goals. The risk tolerance naturally decreases in this stage, as you have fewer working years left to recover from significant market downturns.

Key Strategies:

  • Reduce Risk Exposure: Gradually shift your portfolio towards more conservative investments, such as bonds, fixed-income funds, or dividend-paying stocks. The goal is to preserve capital while keeping some exposure to growth.
  • Maximize Retirement Savings: With retirement on the horizon, take advantage of catch-up contributions for retirement accounts that allow you to save more after age 50. Review your projected retirement income and adjust contributions as needed.
  • Plan for Healthcare Costs: As you get closer to retirement, healthcare expenses become a more significant consideration. Look into long-term care insurance and ensure you have a plan for covering medical costs in retirement.
  • Diversify Income Streams: Consider diversifying your income sources through annuities, rental income, or other forms of passive income to provide added security in retirement.

At this stage, your primary goal should be to transition from wealth-building to wealth preservation, ensuring that your financial assets will last throughout your retirement years.

Retirement (Ages 60 and beyond): Preserving Wealth and Generating Income

Once you have retired, the focus shifts entirely to protecting the wealth you’ve accumulated and ensuring a steady income stream to support your lifestyle. With no active income from work, it is critical to manage your assets carefully to make them last throughout your retirement years.

Retirement brings a lower risk tolerance, as large losses can significantly affect your quality of life. As such, your portfolio should be predominantly conservative, emphasizing income generation and capital protection.

Key Strategies:

  • Generate Steady Income: Look for reliable income sources, such as bonds, dividend-paying stocks, or annuities, to cover daily living expenses without drawing too heavily on your retirement savings.
  • Maintain Liquidity: Ensure that you have enough liquid assets to cover immediate expenses and any emergencies that may arise. Having access to cash or liquid investments like money market funds can prevent the need to sell long-term investments at inopportune times.
  • Manage Withdrawals Carefully: Develop a withdrawal strategy that allows your assets to last for the duration of your retirement. One popular method is the 4% rule, where you withdraw 4% of your portfolio each year, adjusted for inflation. However, this should be customized based on your unique financial situation.
  • Review Estate Plans: Ensure your estate plans are up to date to reflect your wishes about the distribution of your assets after your death. Regularly review your beneficiaries, wills, and trusts to avoid potential legal issues for your heirs.

Managing wealth in retirement is about finding the right balance between enjoying your hard-earned savings and ensuring they will sustain you for the rest of your life.

Conclusion

Investing is not a one-size-fits-all journey. As you move through various stages of life, your financial priorities and risk tolerance evolve, requiring you to adjust your investment strategy accordingly. In your younger years, focus on aggressive growth to build a solid foundation. In midlife, balance growth with stability to protect your assets while continuing to grow wealth.

As you near retirement, shift towards preserving capital and generating income to ensure a comfortable and secure future. No matter the life stage, staying informed, regularly reviewing your financial plan, and seeking professional advice, when necessary, will help you achieve your long-term financial goals.

 


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E-Financial

Edun, Finance Minister Inaugurates NDIC New Management

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Mr Wale Edun, minister of Finance and coordinating minister of the Economy,  has inaugurated Mr Thompson Oludare Sunday, new managing director/chief executive officer of the Nigeria Deposit Insurance Corporation (NDIC), and Dr Kabir Sabo Katata, executive director (Operations),  at the Ministry of Finance, Abuja.

Mr Wale Edun, minister of Finance and coordinating minister of the Economy, flanked by Mr Thompson Oludare Sunday, new managing director/chief executive officer of the Nigeria Deposit Insurance Corporation (NDIC), and Dr Kabir Sabo Katata, executive director (Operations),

In his speech during the occasion, the Minister submitted that the NDIC, as a component of the financial safety-net has a crucial role to play in the nation’s march to economic stability and prosperity.

He therefore charged the Management team to bring their diverse wealth of experience to bear on their new assignment while assuring them of the ministry’s full support in the task ahead.

Responding, Mr Sunday who spoke on behalf of the Management team, expressed appreciation to His Excellency, President Bola Ahmed Tinubu for their appointment.

He assured the Hon Minister of the readiness of the Management under his leadership to live up to expectations of the President in particular and the nation in general in the discharge of their duties.

The Management  later received by the Corporation’s Head Office with a warm welcome by the workforce.

A statement signed by Hawwau Gambo, head, Communication & Public Affairs Department, revealed that Addressing the workers on behalf the Management team, Mr. Sunday promised to work in harmony with the staff to move the Corporation to its next level performance.

He stressed that the Management’s focus would be based on the public policy objectives, functions and mandate devolved on the Corporation by the enabling law that established it.

Thompson Oludare Sunday is a seasoned financial expert with over 30 years of regulatory and supervisory experience.

Having cut his teeth with the Central Bank of Nigeria (CBN) in 1989, he went ahead to acquire high-end knowledge in Central Banking, spending 24 unbroken years in banking supervision.

While his vast experience is in the regulation and supervision of licensed institutions, his deep expertise span corporate governance, risk management and compliance as veritable tool for ensuring the safety and soundness of institutions.

He is a highly analytical and cross functional team worker with strong interest in building individual and institutional capacity for transformation and excellence.

Thompson’s skills and experience were horned by several key responsibilities and special assignments he handled for the apex Bank before his retirement as a Director 2021.

Kabir Sabo Katata, ED (Operations),  is a quantitative energy strategist and computational finance expert with strong power trading and risk management experience.

He has over twenty-eight years’ experience in the design and management of technically innovative systems in multiple industries including telecommunications, IT, energy (petroleum & power), finance and government.

He is a specialist in sophisticated financial optimization, the application of modern statistical techniques and mathematics to energy, deposit insurance and banking sectors.

Dr. Katata joined the service of the Nigeria Deposit Insurance Corporation in 2012 as an Assistant Director in the Research, Policy and International Relations Department and rose to the pinnacle of his career as Director in January 2022, before his new appointment as Executive Director (Operations).

 

 


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Union Bank Rewards Customers with ₦5 Million Each in Save and Win Palli Promo Season 4 Grand Finale

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Union Bank of Nigeria has proudly concluded the fourth edition of its acclaimed Save and Win Palli Promo, awarding three fortunate customers a life-changing ₦5 million each at the grand finale. Since its inception, this transformative campaign has disbursed over ₦330 million in cash and gift prizes, touching the lives of more than 5,000 customers nationwide and elevating their financial prospects.

The grand prize winners, representing diverse regions across the country, emerged through transparent electronic draws supervised by regulatory authorities. The celebrated recipients, Alhaji Abubakar Sadiq Isah (Zaria Branch, North), Atilabor Seikemefa Friday (Sapele Branch, South-South), and Oluranti Ogunluyi (Ilaro Branch, South-West), received their prizes at The Stallion Plaza, Union Bank’s Head Office, Marina, Lagos, in the presence of other winners, and the Bank’s executive leadership led by Managing Director/CEO Yetunde Oni.

Vivian Imoh-Ita, Head of Retail and SME Business, reflected on the enduring impact of the campaign: “Over the past four years, the Save and Win Palli Promo has enriched the lives of thousands, providing crucial financial relief and rewarding diligent savers. We are unwavering in our commitment to empowering our customers so they may thrive and achieve their ambitions.”

Chief Brand and Marketing Officer, Olufunmilola Aluko, highlighted the Bank’s broader mission: “Union Bank is delighted by the ripple effect our targeted savings initiatives have created. We have seen a significant boost in savings culture, allowing customers to reach their financial goals, while our innovative promotions continue to cushion economic challenges and foster responsible financial habits.”

Kicking off in December 2024 and concluding in May 2025, the latest season saw over 3,000 customers rewarded with gifts and cash, including motorcycles, tricycles, fuel vouchers, and substantial cash prizes, with total giveaways exceeding ₦131 million.

To qualify, customers maintained a minimum balance of ₦10,000 and completed at least five transactions monthly. Monthly draw winners received ₦100,000, while quarterly draws featured exciting prizes such as motorcycles and tricycles.

As Season 4 draws to a close, Union Bank reaffirms its dedication to nurturing customer growth and extending robust financial support nationwide. Through continued innovation, the Bank remains steadfast in its mission to empower Nigerians and foster sustainable wealth for all.


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NIBBS: Banks Close 29.4m Accounts, Dormant Accounts Hit 33.39m

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Banks in Nigeria closed 29.4 million accounts as of March 2025, according to the latest report by the Nigerian Interbank Settlement System (NIBSS).

NIBBS: Banks Close 29.4m Accounts, Dormant Accounts Hit 33.39m

The figure represents a sharp year-on-year increase of 30.43 per cent from the 22.54 million closed accounts recorded in March 2024.

It also reflects a steady rise in account closures over recent months, with 33.29 million closed accounts reported in February 2025 and 29.43 million in January.

The report also revealed a significant increase in dormant accounts, which surged to 33.39 million in March 2025, up from 19.79 million in the same period in 2024, a 71.3 per cent rise in inactive accounts over the past year.

Despite the spike in closures and dormant accounts, the number of active bank accounts rose from 219.64 million in March 2024 to 320.05 million in March 2025, representing an increase of over 100 million, or 45.7 per cent.

NIBSS defines a dormant account as one that has seen no deposit, withdrawal, transfer, or point-of-sale transaction for a period of six months.

The surge in account closures and dormancy follows the Central Bank of Nigeria’s directive issued in December 2023, mandating commercial banks to restrict Tier-1 accounts not linked to a Bank Verification Number (BVN) and National Identification Number (NIN) by March 1, 2024.

In response to the directive, BVN enrolment increased from 61.6 million in April 2024 to 66.23 million by July 2025, as more Nigerians rushed to meet the CBN’s compliance deadline.

 

 


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