Got $200? 2 Retirement Stocks to Buy and Hold Forever

Are you looking to park some cash, even just a little? Then these two are the best options for those seeking to hit their retirement goals.

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I have to say, when it comes to investing, one of the worst reasons to not invest is that you don’t have enough money. Granted, if you are trying to pay off debt, or every single dollar of your daily living is going towards expenses, yes you likely do not have enough money to invest. However, if you have even a few bucks to put aside, it all adds up. And that is so important.

Even just $200 — yes, $200 — can certainly be the difference between retiring earlier than you hoped — especially when it comes to finding the right retirement stocks. Today, we’re going to look at two you can feed into time and again for a lifetime of retirement income.

First, an ETF

If you want to park some cash and let it grow until retirement, then I would certainly include an exchange-traded fund (ETF). If you’re even just in your 20s right now, then this could create immense passive income through both returns and dividends with the right ETF.

To find the right one, you’ll want an ETF that provides you with a diverse portfolio including different sectors and market caps. Furthermore, look for an ETF with a low expense ratio, so you aren’t paying to have your money invested. And, of course, long-term growth should be a focus.

In this case, a great retirement ETF would be Horizons S&P/TSX 60 Index ETF (TSX:HXT). The HXT ETF is a popular choice for Canadian investors looking for exposure to the largest and most liquid stocks listed on the Toronto Stock Exchange. HXT aims to replicate the performance of the S&P/TSX 60 Index, which includes 60 of the largest companies on the TSX. These companies are well-established and leaders in their respective sectors.

What’s more, it offers an ultra-low management fee, which is around 0.03%. This makes it one of the most cost-effective ETFs available, allowing more of your investment to compound over time. And another great feature? Instead of paying out dividends, HXT reinvests them, which can lead to better long-term growth due to the power of compounding. Overall, it’s a perfect option for those wanting to park their cash.

A blue-chip grower

If you want to put the rest of your cash to work for perhaps short-term performance. You could still let your money be parked there, letting your returns grow. However, find the right stock and you could use the passive income from dividends for your other needs. Or just pop it back into the stock!

In this case, I would consider goeasy (TSX:GSY). 

This can be a compelling option for young investors aiming for long-term growth and retirement by age 60. The company has demonstrated robust revenue and earnings growth over the past several years. Its consistent performance indicates its ability to capitalize on market opportunities and expand its business.

What’s more, goeasy stock operates in the non-prime consumer lending and financial services sector, which has significant growth potential. As more individuals seek alternative lending solutions, goeasy’s market could expand further.

So, as the stock is a market leader with a solid balance sheet and more growth on the way, it looks very attractive — especially with shares up 62% in the last year and a 2.72% dividend yield as of writing.

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 Amy Legate-Wolfe has positions in Goeasy. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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