Here’s the reality check: the average TFSA (Tax-Free Savings Account) balance for Canadians aged 50 to 54 is roughly $26,479, according to data compiled by Blueprint Financial.
That’s not a catastrophe, but it’s also a long way from where most people hoped to be. If you’re sitting near that average, or below it, the answer isn’t to panic. It’s to get intentional.
And one stock worth putting on your TFSA radar right now is Computer Modelling Group (TSX:CMG), a profitable, dividend-paying software company with a 47-year track record and a business model built to compound over time.
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Build your TFSA over time
The TFSA has been available since 2009. That means a 50-year-old today has had over 15 years to contribute. Yet most haven’t come close to maxing it out.
Mortgages, childcare, career pivots, and rising costs all compete for the same dollars. The TFSA becomes something you’ll “deal with later”, until later shows up faster than expected.
The TFSA is one of the best tools for catching up.
- Every dollar of growth and income inside the account is permanently sheltered from tax.
- Withdrawals don’t claw back government benefits.
- That means a well-chosen stock inside your TFSA works harder than the same stock held in a taxable account.
CMG belongs in a catch-up TFSA strategy
CMG is not a glamorous name. It doesn’t show up on trending stock lists. But it’s the kind of company that could build wealth over decades inside a TFSA.
The company has been developing reservoir simulation software since 1978, originally out of the University of Calgary. Today, it serves more than 450 commercial clients and 200 universities across roughly 60 countries. Its clients include Shell, ExxonMobil, Petrobras, Cenovus Energy, and ADNOC.
What makes CMG interesting is the business model. In fiscal 2025, 67% of total revenue came from recurring software licenses. The company generated $27.6 million in free cash flow and posted an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 34%.
CMG is also in the middle of an acquisition-led expansion. Since 2023, it has made three purchases: Bluware, Sharp Reflections, and SeisWare, all in the seismic interpretation space.
Together, these deals represent over $50 million in annualized revenue acquired. The near-term effect has been some margin compression, with the trailing 12-month adjusted EBITDA margin slipping from 40% in late 2024 to 28% by fiscal Q3 of 2026 (ended in December). That’s the dilution from buying businesses that have lower margins.
But management has been transparent about the path forward. The target is to return to positive organic recurring revenue growth by Q4, and to push the overall software revenue mix back toward 80% over the long term.
Analysts tracking CMG stock forecast revenue to increase from $125.7 million in fiscal 2026 to $247 million in fiscal 2030. In this period, the TSX stock is projected to improve its free cash flow from $19.5 million to $86 million.
If CMG is priced at 15 times forward FCF, which is lower than its five-year average, it could return over 300% within three years.
Catching up at 50 isn’t about taking big swings. It’s about finding quality businesses, holding them in the right account, and letting time do the work. CMG is one name worth considering.
