The Tax-Free Savings Account (TFSA) has been a dream come true for financially savvy Canadians with the discipline to use the account well. The TFSA can be an excellent investment vehicle that you can use to achieve the kind of financial freedom in your retirement that can make your golden years some of the best times in your life.
If you’re inching closer to 50, retirement is not a far-fetched concept. Rather, it is a reality that’s coming nearer each day. However, this still leaves you enough time to adjust your portfolio and gear it toward your retirement plans. Despite the increasing popularity of TFSAs, the average TFSA balance for Canadians between 50 and 54 is $30,190. This means that for those eligible for the account since its inception still have a little over $58,000 of unused room.
15 years away from the traditional retirement age of 65, Canadians at 50 can still shore up their portfolios for a more comfortable retirement. Considering that the life expectancy is around 80 years, your portfolio should support roughly 30 years of growth and income.
Now, the 50s are an important time. If you have not been considering proper retirement planning so far, this is the time to do it. The TFSA is an amazing tool, but what you hold in the account matters a lot.
Source: Getty Images
Importance of holding quality growth stocks
A well-balanced TFSA portfolio protects your capital from potential losses while providing growth in the long run. To balance the boring investments that protect your portfolio, you need high-quality growth stocks to inject the accelerated growth you need. While slightly riskier than blue-chip stocks, growth stocks offer the chance to capture more significant capital appreciation to grow your wealth.
Shopify (TSX: SHOP) is one of the top names that come to mind when I think about growth stocks with the potential to deliver substantial long-term growth. The $219.97 billion market-cap giant in the e-commerce space can be an excellent pick for TFSA portfolios.
Long-term growth
Shopify is the kind of company with all the attributes that can make it a good long-term investment. It has the cash flow growth profile that supports substantial compounding over the years. The e-commerce industry only keeps growing, and Shopify’s platform will only become increasingly important for merchants of all sizes to grow their online presence and bring in more sales.
Shopify has been successful one quarter after the next. In Q4 2025, it reported a 31% year-over-year growth, with significantly improved free cash flow margins.
Foolish takeaway
In the short time that it has been around, Shopify has established itself as the go-to commerce stack for every merchant, whether they’re running a small business at home or have a global presence. The e-commerce platform makes it easier for merchants of all sizes to do what they need and enjoy greater success. With AI integration improving its offerings further, Shopify has plenty of money to make. In turn, Shopify investors have plenty of growth to capture.
Nestled in a well-balanced TFSA portfolio, Shopify stock can be an excellent growth injector for your retirement fund.
