If you’re interested in a serene retirement, it’s essential that you take control of your finances. In addition, I believe that by making use of a Tax-Free Savings Account (TFSA), investors could accelerate their way to that goal. This is because any gains generated in a TFSA aren’t subject to additional taxes, which could allow investors to snowball their accounts much quicker.
In this article, I’ll discuss two top stocks to invest in a TFSA, helping you sail into a serene retirement.
Invest in this top stock
When I think of stocks that could help investors sail into a serene retirement, Constellation Software (TSX:CSU) is often the first company I think of. For those that aren’t familiar, this is a tech conglomerate. It acquires vertical market software businesses then provides the coaching and resources required to turn those acquisitions into exceptional business units.
For most of its history, Constellation Software has focused on small- and medium-sized VMS businesses. However, in 2021, the company announced that it would finally start targeting large VMS businesses. It’s unclear how this will reflect in the company’s bottom line over the coming years, but early indications suggest that it could help Constellation Software continue to find success.
Since its initial public offering (IPO), Constellation Software stock has gained more than 15,100%. To put that into perspective, a $10,000 investment made in 2006 would be worth more than $1 million today. Over the past year, Constellation Software stock has gained more than 45%. That suggests that the stock continues to find success, even after generating so much in returns over the past 17 years.
One of my favourite tech stocks
Many investors may have a different opinion about Shopify (TSX:SHOP) stock, however, I strongly believe that it remains one of the most intriguing stocks today. There’s no denying that Shopify holds a leadership position within the global e-commerce industry. Looking at the American e-commerce market, investors can note that Shopify holds a 10% share.
What attracts me the most to Shopify is its strong partnership network. Labelled as “strategic commerce partners,” this group features the likes of Meta Platforms, Apple, Google, and many more.
On the services side of things, Shopify also appears very attractive from an investment point of view. The company offers a wide range of solutions that can cater to anyone from the first-time entrepreneur to large-cap enterprises. In my opinion, that breadth in Shopify’s offering is what separates it from its competitors.
Since its IPO, Shopify stock has gained more than 2,300%. Although that’s not nearly as high as the total return that some investors have managed to squeeze out of this stock, it is still very promising considering the stock only went public in 2015.
In my opinion, as the e-commerce industry continues to grow, I believe Shopify could continue to grow alongside it. As a major leader in that industry, Shopify is well positioned to become a behemoth in the stock market.