Retirement isn’t just a given. You’ve got to save for it. When it comes to Millennials, many have delayed big, expensive life milestones due to financial reasons.
Indeed, it’s tough to get ahead financially when you start out of the career gate with quite a bit of student loan debt. As Millennials start families and save up enough for that first down payment on a mortgage, there’s a good chance that the retirement fund isn’t yet at a level to fast-lane one to a rich retirement.
Undoubtedly, housing costs in Canada are quite absurd. Getting a mortgage on a home is enough to drain one’s savings and cause one to go paycheque to paycheque for quite some time. Either way, for young people who have enough left over after every payday, it is more than worth the while to contribute to one’s TFSA (Tax-Free Savings Account) to get the ball rolling a bit on retirement. Undoubtedly, the TFSA is a fantastic tool that can be a means to save for your retirement, a down payment on a home, or even the child’s education.
It’s a fantastic wealth compounder for just about everything. That’s why I’d encourage investors to make the maximum contribution every single year if they’re able. This year, you’ll be able to top up the TFSA by another $7,000. Once you do top up, it’s wise to invest the sum in equities, the best investment instrument for extremely lengthy periods of time.
Here are two interesting stocks that could help you get towards your retirement goals.
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Constellation Software
Constellation Software (TSX:CSU) stock is a perennial TSX outperformer, with another year of huge TSX-crushing gains in the books for 2024.
Over the past year, the stock rallied around 35% to around $4,400 or so per share. Indeed, the software firm that seems to know how to find underrated growth options in the Canadian small-cap scene is not done with its incredible merger and acquisition (M&A) spree. There’s a lot to love about the firm as management hunts down the many relatively unknown firms to power the growth engine.
In 2025, I think Constellation will make a move past a $100 billion market cap, with the growth engine humming along and a chance for TFSA investors to pick up a share (or maybe two if there’s some TFSA cash left over from last year) after the latest 7% pullback from all-time highs. If you’re young and can handle the wild ride, the software gem is worth keeping tabs on throughout the year. Artificial intelligence (AI) is the name of the game, and Constellation could have plenty of potential deals brewing.
Waste Connections
Waste Connections (TSX:WCN) is another great appreciator to pick up on recent weakness, with shares now down close to 10% from all-time highs. Whenever the steady waste collector sees its shares correct, investors should be ready to load up on shares before the next leg higher.
Indeed, the stock was a tad frothy prior to its slide. With a proven M&A plan and one of the more economically resilient cash flow streams out there, I view the name as a great pick-up at below $250 per share. Sure, turning trash into cash isn’t an exciting business, but it’s a necessary and underrated one that can and will pay growing dividends for years to come.
