Did you know that the average Tax-Free Savings Account (TFSA) balance of Canadians in the 45 –49 age group is $21,777? This data is from Statistics Canada based on the 2022 TFSA contributions. We are already in 2025, and the stock market has recovered significantly from the 2022 bear market. If your TFSA did not recover with the market, then you need to change your strategy and invest that $21,000 in stocks which can convert it into $100,000.
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Simple strategy to convert $21,000 into $100,000
Once you know the returns you want from your portfolio, the strategy is a plug-and-play with some math. You will need a compounded annual growth rate (CAGR) calculator.
Determine the returns you seek from your TFSA portfolio
If you want $100,000 in nine years and have $21,000 to invest, your portfolio should generate a 20% CAGR. You can create a table of the CAGR and investment tenure for a $21,000 investment.
| CAGR | Investment Tenure (Years) | Portfolio Value |
| 30% | 6 | $101,362 |
| 25% | 7 | $100,135 |
| 20% | 9 | $108,355 |
| 15% | 12 | $112,355 |
While we all wish to earn a 30% CAGR, such high returns are only in one-off cases when you catch up on a trend early. Such returns come with high risk. However, there are a few stocks that can generate such returns when their growth catalyst is triggered.
And if you do not want to take such a high risk, a longer investment tenure can generate the returns you seek.
Strategy 1: Catching up on growth catalysts early
Nvidia (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO) were among the biggest beneficiaries of the generative artificial intelligence (AI) boom that began in November 2022 with ChatGPT. Had you invested $21,000 in either of the stocks by December 30, 2022, you would now be sitting on a TFSA portfolio of $208,164 or $93,514, respectively.
Nvidia benefited from the demand for its data centre graphics processing unit (GPU) that trains AI models. Broadcom benefited from a significant jump in AI semiconductor solutions and infrastructure software that cater to AI data centres.
These stocks have already priced in the AI jump. Is there more upside?
| Stocks | Stock Price as on Dec 30, 2022 | Number of Shares | Portfolio Value in June 2025 |
| XIT ETF | 433.22 | 632 | $43,418 |
| Constellation Software | $2,114 | 10 | $48,060 |
| Nvidia | $14.61 | 1437 | $208,164 |
| Broadcom | 455.91 | 376 | $93,514 |
Nvidia is yet to witness the AI at the edge and the self-driving cars boom. The company could also benefit from the return of the crypto bubble or esports trend, which drove the stock in 2015 and 2021. Now, it is difficult to say when any of these growth catalysts will trigger. That is the risk one has to take for the kind of returns Nvidia offers. Thus, it is said that timing the market is impossible.
Why Nvidia? Nvidia is at the forefront of the above catalyst with its cutting-edge GPU technology, which no other company could match so far. Its unbeatable computing power gives it an edge over competitors and allows it to get a higher price for its GPUs.
Strategy 2: Investing in resilient growth stocks
Another strategy that can build you a $100,000 TFSA portfolio is investing in resilient growth stocks with a well-diversified portfolio.
The iShares S&P/TSX Capped Information Tech ETF (TSX:XIT) invests in top Canadian tech stocks, with 25% of its holdings in each of Shopify and Constellation Software. The ETF’s diversified tech portfolio can help you tap all types of tech trends. It has generated an average annual return of over 18% in the last 10 years. XIT fits our requirement of a 20% CAGR for nine years to achieve a $100,000 TFSA value.
Investor takeaway
In both scenarios, we start with the outcome, identify the returns needed, and then shortlist the stocks based on risk and return. When you know what you are looking for, your investment has a direction. Your stocks may not always give the desired returns. However, if the reason you were bullish on the stock is intact, the dip is an opportunity to buy.
