If you have contributed to your Tax-Free Savings Account (TFSA) since its inception, you may be sitting on about $81,500. And that’s if you haven’t grown your savings in the past 13 years and haven’t earned a single dollar on your TFSA funds, which is almost impossible, since even marginal interest would have earned you something in such a long time.
But even if you start with a sum of $75,000 (less than a fully stocked TFSA) and choose your investments wisely, you might have a strong chance of reaching the million-dollar mark in around three decades. Many investments might get you there, including the following three stocks.
A commercial real estate company
Colliers International Group (TSX:CIGI)(NASDAQ:CIGI) has an impressive business. Its primary focus is commercial real estate services, which include a variety of solutions, including real estate management to capital markets. This diversification of services/solutions is augmented by its geographic spread, as the company operates in over 62 countries.
It’s an old, stable giant that has proven its mettle in a variety of markets and harsh conditions hitting the real estate industry. It’s also a robust grower that returned almost 825% to its investors in the last 10 years (including dividends).
Assuming the company can keep up that pace, you can turn your $25,000 in this stock into over $200,000 in just one decade. The growth in three decades would be even more phenomenal.
A tech company
The tech sector in Canada is currently going through a brutal correction phase. The good news is that you can buy impressive and usually expensive stocks like Descartes Systems Group (TSX:DSG)(NASDAQ:DSGX) at a discounted price (29%).
Even with the current fall taken into account, the company’s returns in the last decade have been quite impressive. It grew its market value by about 833% and, at this rate, could push a $25,000 sum to over $200,000 within a decade or take you to half-a-million dollars in about 25 years.
As a logistics and supply chain solutions company, it has a business model and orientation that will stay relevant for decades if the company keeps evolving with the underlying industry.
A financial company
goeasy (TSX:GSY) is easily one of the most compelling growth stocks in Canada right now, based on its performance in the last decade. It has grown at a remarkable pace, and even though it’s in correction mode right now (after the aggressive post-pandemic growth), which has “halved” its market value and pushed its yield up to 3.5%, the 10-year returns of the company are at 1,900%.
Even if you just want to take the price appreciation into account, its 1,400% is still significantly higher than the other two that are great growth stocks in their own right. If it manages to return 1,900% in the next decade, you may grow your $25,000 to over $475,000. That’s nearly half a million with one-third of the total capital invested.
Foolish takeaway
If the three stocks keep growing at their current pace, they can easily take you to a million dollars in about 15 to 20 years. Even if they underperform slightly, you might still reach your million-dollar goal in three decades. It will be the same if only two out of three stocks perform as per your expectations.
