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Millennials: Retire Young With These 2 TFSA Millionaire-Maker Stocks

Young investors have been dealt a pretty tough hand. Many millennials graduated into one of the worst recessions in recent memory, and to this day, the impact on the labour market can still be felt. Thus, for many of today’s young people, significant life milestones have been delayed, and that has some throwing in the towel when it comes to retirement goals, which may seem like an abstract concept given the circumstances and how far off retirement is.

While millennials may have a higher degree of financial stress on their shoulders versus prior generations, they should still strongly consider planning for their retirement goals immediately rather than brushing it off as a distant and abstract concept. Young people have time on their side, which is arguably the most significant advantage when it comes to investing. Compound interest is an incredible force that can drive wealth creation, and when taxes are taken out of the equation through the use of a TFSA, the long-term effects of tax-free compounding can only be described as profound.

While many millennials may find it difficult to gather enough savings, the ones who are able (and willing) to make the maximum annual contribution of $5,500 into a TSFA while using the proceeds to buy wonderful long-term growth stocks will be the ones that will end up retiring not just on time, but early — perhaps much earlier than anyone would think.

Without further ado, here are two growth stocks that would be fit perfectly within a long-term buy-and-hold TFSA growth account:

Cargojet (TSX:CJT)

What if I told you there was a stock whose business is poised to ride the continued rise of e-commerce, and that this company had a virtual monopoly in Canada? If you’re a growth investor, you’re probably inclined to back up the truck.

Cargojet is this stock, and it’s probably one of the best growth names that most investors have never heard of likely due to its meagre $900 million market cap and the fact that the company doesn’t get nearly as much media coverage as it rightfully deserves.

The company provides overnight cargo services, hauling a tonne of packages with its high-payload fleet of aircraft. Management has done a terrific job of improving its asset utilization, and that’s resulted in enhanced operational efficiencies over the past few years. Over the last year, ROE numbers jumped to 23% with ROA increasing to 4.6%. The trend is looking up, and as e-commerce takes-off, I suspect shareholders will continue to be rewarded with massive capital gains.

Spin Master (TSX:TOY)

With this company, you’re not getting a simple toy company. I like to think of it as a tech company that happens to sell toys. Management’s leveraging of innovative tech is remarkable, and that’s resulted in some pretty awe-inspiring toys, like Hatchimals and Luvabella.

The stewardship, I believe, is underrated; so too is the valuation. At current levels, the stock trades at a mere 23.5 times forward earnings, which is a steal when compared to the long-term potential and its disruptive potential in an industry that’s apparently in dire need of innovation.

Foolish takeaway

With two small-cap/mid-cap growth stocks like Cargojet and Spin Master in your portfolio, you’ll be well on your way to a luxurious retirement in spite of a modest financial outlook versus prior generations.

Stay hungry. Stay Foolish.

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Fool contributor Joey Frenette owns shares of Spin Master. Spin Master is a recommendation of Stock Advisor Canada.

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