Canadians investing in retirement should modify their investment strategy based on how far they are from retirement. Canadians in their 50s are around a decade or so away. If they are still far from hitting the desired number, it might be high time for them to start investing in powerful growers and accelerate the pace at which their portfolio grows. While there are good picks among blue-chip stocks, too, it might be a good idea for such investors to increase their risk tolerance and invest in a broader range of growth stocks.
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A real estate stock
FirstService (TSX: FSV) is a giant in the property management and essential real estate services industry, with a massive footprint across the U.S. and Canada. The company manages thousands of properties/projects and millions of individual housing units, making it one of the most prominent property managers in North America. The other half of its business is property services, which it conducts through eight subsidiaries.
The financials are impressive, but this company’s consistency is even more remarkable. It has been growing its revenues for almost three decades. This consistency is also reflected in the stock’s performance, apart from just one major slump at the beginning of 2022 (which the stock has finally recovered from). Even taking that into account, the stock has grown over 600% in the last 10 years.
The company also offers dividends, but the yield is too low. Also, assuming the stock can manage even half of this growth in the coming decade (300%), that can be a significant boost to the portfolio of Canadians in their 50s.
A tech stock
For investors who either already have a healthy risk tolerance or are on their way to building one, Galaxy Digital Holdings (TSX: GLXY) can be a powerful pick. However, entry and exit into this stock might require a more “active” approach as its growth has rarely been a straight line. The next best thing would be to buy and hold the stock through its slump cycles, but don’t wait till your retirement to sell it. Instead, exit at the right moment to capture maximum gains.
The stock’s powerful growth potential is evident from its performance in the last one-and-a-half years, where it grew by over 400%. Another impressive aspect of this performance was that the price-to-earnings remained quite attractive, well below 10.
This growth can be attributed to the powerful performance of Bitcoin, but Galaxy Digital might offer a little more stability than miners even when the underlying crypto assets underperform. The reason is its diverse portfolio of crypto services, which makes it a solid pick for a growing crypto economy. The scope is far more significant than simply crypto mining. With a crypto-friendly president at the helm, the U.S. may emerge as a significant catalyst for such an economy.
Foolish takeaway
Tech stocks like Galaxy tend to be a bit more volatile than stocks from most other sectors, and crypto-related stocks are even more volatile. But if you are willing to take this risk, the payout can be pretty substantial. If not, you should consider parking a significant amount of cash in more conservative yet powerful growth stocks like FirstService.
