Building a sizable nest egg within your Registered Retirement Savings Plan (RRSP) is part of most Canadian investors’ retirement planning. The RRSP allows for far more substantial contributions than a TFSA, one of the key differences between the two tax-sheltered accounts. Still, it’s also inaccessible to people until their retirement.
Since it’s a far-off need for most investors, many choose safety over growth, but that can be a mistake and lead to a smaller-than-ideal nest egg for many investors. The solution is using the right stocks to build a nest egg of adequate size.
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A learning platform stock
Docebo (TSX: DCBO) is one of the world’s most prominent learning management platforms (LMS). Considering the fragmented nature of this market, it has a decent market share and claims to be the top platform in its niche: enterprise learning. It’s already being used by over 3,800 companies around the globe, including several Fortune 500 companies.
From a performance perspective, Docebo is rewarding but inconsistent. It has gone through three bullish phases. The current one, if you can even call it that, is the most modest and has pushed the stock up 45% in a little over two years.
The stock is also quite overpriced, considering its price-to-earnings ratio of 77. Still, the rate at which Docebo is capturing the enterprise learning market and the organic growth may cause accelerated long-term growth of the stock.
A logistics giant
TFI International (TSX: TFII) started as a trucking company and has grown into a logistics giant with a massive trucking fleet and a sizable footprint across North America. The company grew significantly during and right after the pandemic, causing the stock to shoot up. It was already a robust growth stock, but the pandemic acted as a trigger and pushed it up at a far more accelerated pace.
As a result, the stock returned over 340% to its investors in the last five years through price appreciation alone (370% if we add dividends to the equation). While corrections follow most growth phases, TFI Interiontal is currently holding its own and fluctuating. But even if it’s not a safe buy right now, it’s a stock you might want in your RRSP for the long haul.
An engineering services company
WSP Global (TSX: WSP) offers various engineering and professional services to several industries. It has a massive footprint and an extensive network of professionals across multiple regions, allowing it to tap into several markets. It’s also assisting businesses and governments to reach their sustainability goals, which is a thriving market to be in right now.
WSP has a solid and long growth history, and its pace has been relatively consistent. The stock is overvalued but not by a dangerous margin. It returned over 660% to its investors through capital appreciation, and overall returns were shy of 830% in the last decade. If it manages to sustain or improve upon this performance, it can help you build a massive nest egg in your RRSP.
Foolish takeaway
Choosing the right stock to park your RRSP cash in for building your nest egg is critical to retirement planning for most Canadian investors. These three stocks can be healthy and safe long-term picks for conservative and daring investors alike.
