Retirement wealth has a strange way of looking impossible right up until time gets involved. Five hundred dollars a month doesn’t scream “future millionaire.” It looks more like groceries, a car payment, or a suspiciously enthusiastic Costco trip. Give that money 35 years to compound, though, and the story changes dramatically.
Starting at 30 and investing $500 at the end of every month through age 65 would mean contributing $210,000 of your own money. At an average annual return of 8%, compounded monthly, the portfolio could grow to roughly $1.2 million. The other $937,000 or so? That’s the part your investments did for you.
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Time does the work
Compounding means returns begin earning returns themselves. Early on, that barely feels noticeable. Later, it can become the biggest contributor to the portfolio. Consider the same $500 monthly investment earning a hypothetical 8% return:
| STARTING AGE | YEARS INVESTED | TOTAL CONTRIBUTED | VALUE AT 65 |
|---|---|---|---|
| 30 | 35 | $210,000 | $1,146,941 |
| 40 | 25 | $150,000 | $475,513 |
| 50 | 15 | $90,000 | $173,019 |
None of those returns are guaranteed. Markets will produce wonderful years, dreadful years, and years when checking your account feels like an entirely optional activity. Yet the difference between starting at 30 and 40 is enormous. Waiting a decade reduces personal contributions by only $60,000, but the hypothetical ending balance falls by about $671,000.
That’s the brutal little trick behind compound growth. The years near the beginning can eventually become more valuable than the dollars added near the end. A Tax-Free Savings Account (TFSA) can make the strategy even more useful.
Enter the TFSA
A $500 monthly investment equals $6,000 annually, below the 2026 TFSA annual dollar limit of $7,000. That doesn’t automatically mean everyone can contribute $6,000, however. Available room depends on age, residency, previous contributions, and withdrawals, so Canadians should verify their personal room before contributing.
Unused room carries forward, while withdrawals generally return as contribution room the following calendar year. Investment growth inside the account doesn’t use additional contribution room and can generally be withdrawn tax-free. Once the account is sorted, the next challenge is finding businesses worth owning for decades. One stock I’d consider for that job is Waste Connections (TSX: WCN).
Beautiful garbage
Waste Connections collects, transfers, recycles, and disposes of waste for roughly nine million residential, commercial, and industrial customers across Canada and the United States. Garbage isn’t particularly glamorous. It is, however, remarkably persistent. Waste Connections focuses heavily on secondary and exclusive markets, where competition can be more limited. That’s helped the company produce strong margins while expanding through acquisitions.
Second-quarter revenue rose 6.4% to US$2.56 billion, while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 6.8% to US$840.1 million. Adjusted earnings per share (EPS) climbed to US$1.50 from US$1.29. Management liked what it saw enough to raise its 2026 outlook. Waste Connections stock now expects US$10.02 billion to US$10.05 billion in revenue and as much as US$1.45 billion in adjusted free cash flow.
That cash can fund acquisitions, dividends, and share repurchases. The company bought back US$614.5 million of shares during the first half alone. For someone investing inside a TFSA, that combination of recurring demand and cash-flow growth is exactly what I’d want compounding quietly in the background.
Bottom line
The obvious problem is valuation. Waste Connections stock trades around 30 times forward earnings. Investors already recognize this is a high-quality business, so weak growth or disappointing acquisitions could knock the shares down quickly. Fuel costs, labour expenses, and acquisition execution also deserve watching.
I therefore wouldn’t pour every $500 contribution into Waste Connections stock. A diversified portfolio makes considerably more sense. Still, that’s almost beside the larger point. Starting with $500 isn’t impressive. Starting with $500 and refusing to stop for 35 years can be.
At an 8% hypothetical return, $210,000 of contributions can become more than $1.1 million. The millionaire-maker ingredient isn’t finding one magical stock. It’s giving good investments enough time to do something remarkable.
