TFSA Cash: Turn Your $81.5K Into $330K by 2032

These Canadian stocks have the potential to deliver average annual returns over 15% and create significant amount of wealth for their shareholders.

| More on:
grow money, wealth build

Image source: Getty Images

The significant decline in the prices of top TSX presents an excellent opportunity for Canadian investors to leverage their TFSA (Tax-Free Savings Account) cash and invest for the long term. An investment of $81.5K (the total cumulative TFSA dollar limit) in stocks that could grow at 15% CAGR (compound annual growth rate) can turn your cash into $330K by 2032. 

Against this backdrop, let’s zoom in on stocks that have the potential to deliver average annual returns of over 15% over the next decade. 


This multi-channel fashion retailer is known for consistently delivering strong financial numbers that drive its stock price higher. For context, Aritzia’s (TSX:ATZ) top line has grown at a CAGR of 19% from FY18. Meanwhile, net income grew at a CAGR of 29% during the same period. Thanks to this solid growth, Aritzia stock has grown at a CAGR of 36.7% in the last three years and handily outperformed the benchmark index. 

Aritzia is well positioned to deliver solid organic sales and profitable growth. Its investments in product innovation, brand awareness, geographic expansion (growing footprint in the U.S.), and e-commerce platform provide a solid platform for growth. Aritzia is targeting new growth categories, which include increasing its penetration in the men’s segment and entering new avenues like intimates and swimwear. 

Overall, strong demand for its offerings, omnichannel expansion, solid expense management, and management’s focus on debt and boosting free cash flow generation positions it well to deliver stellar returns over the next decade.


Shopify (TSX:SHOP)(NYSE:SHOP) stock is among those tech stocks that plunged and erased all of its pandemic-led gains. This presents a solid opportunity for TFSA investors to buy its stock at prices that are at a multi-year low. Shopify stock created a massive amount of wealth for its investors, and despite an over 77% decline from its peak, it is still up about 310% in five years, representing a CAGR of 32.65%.

Despite the near-term concerns (like the slowdown in e-commerce growth), Shopify is well positioned to capitalize on the structural shift in selling models towards the omnichannel platform. Its investments in POS (point of sale) will expand its offline GMV (gross merchandise volume). Further, its focus on expanding its existing products into new geographic markets bode well for growth. 

Shopify is strengthening its e-commerce platform and investing in fulfillment, which will likely accelerate its growth by reducing delivery time and unit cost. Moreover, its partnerships with leading social media companies expand its sales and marketing channels, which will drive its merchant base and financials. 

Shopify’s growth measures are expected to drive its market share. Meanwhile, the growing adoption of its payments and capital offerings bode well for growth. 

Shopify faces easier comparisons in the coming quarters. Moreover, the easing of macro pressure could provide a significant lift to its stock price. Further, Shopify stock is trading at NTM (next 12-month) EV/EBITDA (enterprise value upon sales) multiple of 7.1, which is at a multi-year low, making it attractive on the valuation front. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends ARITZIA INC.

More on Tech Stocks

Tech Stocks

3 Reasons to Buy Shopify Stock Like There’s No Tomorrow 

Shopify stock fell 25% after reporting disappointing guidance. Should investors buy the dip and hold the stock for the long…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Tech Stocks

3 Canadian Growth Stocks I’d Buy Under $30

These under $30 Canadian growth stocks are well-positioned to capitalize on mega trends such as e-commerce, the electrification of vehicles,…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Tech Stocks

Why This Tech Stock Just Jumped 18%

This tech stock just saw shares surge after announcing it was being acquired, but more growth could still be in…

Read more »

Group of people network together with connected devices
Tech Stocks

Prediction: My 2 Top TSX Stocks to Beat the Market in 2024 and Beyond

Looking for stocks set to beat the market in 2024 and well beyond? Here are two tech stocks set to…

Read more »

man touches brain to show a good idea
Dividend Stocks

3 No-Brainer TSX Stocks I’d Buy Right Now Without Hesitation

Three TSX stocks that continue to overcome massive headwinds and beat the market are no-brainer buys right now.

Read more »

young woman celebrating a victory while working with mobile phone in the office
Dividend Stocks

This Dividend Stock Just Jumped 10%! Time to Buy?

This dividend stock is way up after being included in a major index, making it a prime time to pick…

Read more »

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

This is the Best AI Stock to Buy Right Now

Investors have a wide selection of AI stocks to choose from, although the best buy today is not the most…

Read more »

grow dividends
Tech Stocks

If This Fast-Rising Stock Isn’t Yet on Your Radar, it Should Be!

Here's why Constellation Software (TSX:CSU) remains a top TSX growth stock long-term investors ought to consider right now.

Read more »