Your Path to TFSA Millions: 3 Canadian Stocks for Generational Wealth

Creating million-dollar nest egg in a rewarding tax-sheltered account like the TFSA can help you and your next generation.

| More on:

Investment goals of most Canadian investors range from modest, like building a small nest egg for retirement (to supplement the pensions), to ambitious, like building generational wealth. While the goal is ambitious, it’s achievable with the proper planning, mindset, and decision. The most important decision is choosing the right investments to grow your savings.

For generational wealth, you may have to choose investments that offer powerful growth opportunities because they are challenging to attain by simply mimicking the market.

coins jump into piggy bank

Source: Getty Images

A uranium company

NexGen Energy (TSX: NXE) is a Vancouver-based sustainability-focused company. It’s an exploration and development stage uranium company, i.e., the transition fuel for a greener future. Uranium is currently the greenest solution for the world’s power needs until we can entirely switch to renewables. This makes it an impressive pick from an environmental, social, and governance investing perspective as well.

The stock’s performance is impressive, considering its stage. It has risen over 570% in the last five years alone, and if it manages even half of that growth going forward, it can significantly boost your portfolio. The only main challenge this stock faces (in the long run) is if uranium demand slumps.

A tech company

If your goal is generational wealth, Constellation Software (TSX: CSU) is arguably one of the best tech stocks you can buy and stash in your Tax-Free Savings Account (TFSA). It has a stellar growth history, a consistent business model, and a stable ownership makeup. About 6.7% of the company is owned by insiders and over 40% by institutions.

As for its growth potential, the stock returned over 217% in the last five years, far more realistic and significantly lower than its growth in the decade. If it manages to sustain this pace, it can keep your portfolio (at least the part invested in this company) growing four-fold every decade. That’s enough to not just build you a massive nest egg for retirement but leave an adequate amount for the next generation.

An alternative financial company

goeasy (TSX: GSY) is an alternative financial company catering to a massive and massively underserved market segment: people with poor credit in Canada. goeasy offers them personal loans and other financial products and services since they can’t reach out to a conventional bank because of their credit score.

This has allowed goeasy to expand to the size of a bank. It has over 400 locations country-wide and has been instrumental in helping thousands of Canadians get back on their feet and improve their credit scores in the process. goeasy has also been a rewarding and resilient growth stock that returned over 145% in the last five years despite two bearish cycles. It’s also a generous dividend payer with a 2.6% yield.

Foolish takeaway

The three Canadian stocks can be powerful additions to your TFSA. They offer modest growth potential in weak markets and aggressive growth potential with the right catalysts. Assuming those catalysts can manifest in the next two to three decades, the stocks might have what it takes to push your TFSA portfolio to the seven-digit mark.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.

More on Dividend Stocks

doctor uses telehealth
Dividend Stocks

Vital Infrastructure Is a Savvy TFSA Stock Paying 7% and the Price is Right

Vital Infrastructure Property is a defensive TFSA stock that gives investors high-yield income and predictable returns.

Read more »

ETFs can contain investments such as stocks
Dividend Stocks

No Time for Stock Research? This 1 ETF Does the Work for You

The iShares S&P/TSX Capped Composite Index Fund (TSX:XIC) eliminates the need for stock picking.

Read more »

woman holding steering wheel is nervous about the future
Dividend Stocks

Does Retirement Feel Far Away? These TSX Dividend Stocks Can Speed Things Up

These stocks have made some long-term investors quite rich.

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How Much You Really Need in a TFSA to Make $500 a Month

It takes quite a bit of money to get $500 per month in a TFSA if you invest in index…

Read more »

up arrow on wooden blocks
Dividend Stocks

2 Great Canadian Dividend Stocks That Just Raised Their Payouts Again

These companies have delivered annual dividend growth for decades.

Read more »

a man relaxes with his feet on a pile of books
Dividend Stocks

TFSA Passive Income: 3 Incredible Stocks That Earn $2,148/Year

These Canadian stocks have a solid history of dividend distribution and are likely to sustain their payouts in the years…

Read more »

Offshore wind turbine farm at sunset
Dividend Stocks

While Interest Rates Sit Still, These 2 Dividend Giants Look Good

Looking for more income? Check out these two high-income stocks!

Read more »

The sun sets behind a power source
Dividend Stocks

Why This Canadian Utility Stock Could Be the Best Stock You Never Think About

This mini-Fortis (FTS) stock is a high-yield Canadian utility stock hidden in plain sight

Read more »