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Are You 40 With $0 in Savings? Follow 3 Easy Steps to Spark Your Earnings

Even if you’re 40 with zero savings today, don’t think that you’re in dire straits. You’re not powerless, as you still have a lead time of 25 years. Just follow some easy steps to kick-start your earnings. You’ll be able to retire comfortably at age 65.

Pay down debt

Paying down debt is the first step you must make so you can start investing. Whitecap (TSX:WCP), for example, is a low-priced energy stock that pays a high dividend. Without debt to pay, you have free cash to purchase the stock at $4.17 per share and partake of the 7.7% dividend.

If you buy $10,000 worth of WCP, your money could double in less than nine a half years. Every month, you’ll receive a passive income of $64.16. In 25 years, your total investment could be worth $63,884.07.

The core operating areas of this $1.71 billion oil and gas E&P company are in Alberta, British Columbia, and Saskatchewan. Since its inception in September 2009, Whitecap has amassed a significant light oil resource base. This portfolio of assets has stable production and low base decline.

Today, Whitecap has a solid foundation for predictable cash flow stream and continued growth. Investors like yourself will realize regular monthly savings.

Open a TFSA

Opening a tax-free savings account (TFSA) is a must. You can save better because of the opportunity to earn investment income that is not subject to tax.

You can choose from a wide range of investment options to place in your TFSA, including NorthWest Healthcare (TSX:NWH.UN). This $1.55 billion real estate investment trust (REIT) pays a juicy dividend of 6.78%.

You gain exposure to the real estate sector, particularly to high-quality international healthcare real estate infrastructures. NWH owns a diversified portfolio consisting of 169 income-producing properties.

NWH leases a total area of 13.8 million square feet, and its leasable properties are in Canada, Australia, Brazil, Europe, and New Zealand.

Assuming you maximize the $6,000 TFSA contribution limit for 2019 and purchase NWH, you will derive annual savings of $406.80. Imagine earning $33.90 monthly savings from a zero balance.

Keep reinvesting the dividends

Another sweetener to a 40-year old novice investor is Rogers Sugar (TSX:RSI). This $545 million company refines, packages, and markets sugar and maple products. The business is an enduring one, as both retail and industrial customers need sugar, maple, and other allied products.

In Canada, the industrial market consumes 85% of sugar production is consumed by the industrial market. Rogers Sugar is one of the reliable suppliers of high-quality, low-cost refined sugar. From an investment perspective, this consumer defensive stock yields 6.78%.

With a generous dividend-payer in your TFSA, you can keep reinvesting the dividends to boost your earnings. A $10,000 made in RSI 16 years ago had a total return of 590.61%, including dividend reinvestment. The value of the investment today is $69,070.19.

How can you pass up on an opportunity that’s selling for $5.17 and can accelerate money growth through dividend reinvestment?

Not a hopeless situation

You’re not the only one who’s starting late. But with reliable dividend payers Whitecap, NorthWest Healthcare, and Rogers Sugar, your savings can grow faster within a limited period.

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Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS. NorthWest Healthcare Properties is a recommendation of Stock Advisor Canada.

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