Canadians wanting to retire wealthy may be a bit nervous right now — even anxious about it. They don’t have all that much put away, and yet they want to retire with wealth at their fingertips. Worse still, some Canadians may be nearing retirement and have practically nothing to show for it!
But don’t worry. When it comes to investing, all you need is a consistent strategy, and time. Even if you’re retiring in a few years, there is still time to enter retirement and still reach riches.
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Use a TFSA
First off, if you’re going to invest on a consistent basis, use something like a Tax-Free Savings Account (TFSA). The TFSA is an excellent option, as you can still take out the cash at any time, all of it if you want, should you absolutely need it.
What’s more, however, is that you can create passive-income streams that can be used to reinvest over the years. Then once you reach retirement, you can take out that passive-income stream from your investments like a paycheque.
Then it’s time to move on to stocks that could get you to riches.
Constellation Software
First up, I would consider tech stock darling Constellation Software (TSX:CSU). Constellation stock has been around for decades, acquiring software companies that it puts under its own brand. What’s more, management has become incredibly good at figuring out which software companies will do well, and which perhaps won’t.
This has allowed Constellation stock to increase by 1,808% in the last decade alone. It just seems to always do well, even when the market is down the company manages to come back up. And although it offers a dividend yield at just 0.20%, that’s still a $5.42 dividend that comes with the incredibly high share price.
Yet again, that share price is worth it for the security you’ll receive in pretty much guaranteeing growth over the next decade. Should a $10,000 investment grow by another 1,808%, that would mean a TFSA worth $190,800!
Fairfax Financial
Another sure winner over the next several years would be Fairfax Financial Holdings (TSX:FFH). Similar to Constellation stock, Fairfax stock has proven over the years that it’s worth the high share price. The company focuses on casualty and property insurance but has also expanded into asset management as well. All in all, management has proven that it can handle the company’s finances and put cash in investor pockets.
Shares are up 139% in the last decade, though Fairfax stock surged 54% in the last year alone. Yet the company still trades at a valuable 10.61 times earnings at the time of writing, offering a dividend yield at 1.36%. That comes to a dividend of $13.38 per share on an annual.
So, again, you’ll receive security from that high share, as Fairfax stock has shown year after year that it can climb, even during the economy’s darkest days. Buying $10,000 and seeing another 139% in share growth could create a portfolio worth $23,900 in another decade, if not more!
