We often set a benchmark for ourselves based on what most people are doing. Where we stand in the investing game gives us a sense of assurance that we at least meet the average. Some don’t settle for average but chase milestones. Whether you are chasing milestones or meeting the average, a Tax-Free Savings Account (TFSA) will help you in your savings journey.

How much does a typical Canadian have in their TFSA at 50?

Statistics Canada doesn’t provide data for the exact age but for an age range. The average TFSA balance of Canadians in the 45–49 age group was $28,084 in the 2024 tax year. It is not an impressive number, as it means only 30% of the cumulative contribution room of $95,000 was used.

There could be multiple reasons for a lower TFSA balance:

You might be in the high tax bracket and use a Registered Retirement Savings Plan (RRSP) to lower taxable income.

You may withdraw from the TFSA to repay the mortgage early.

Or you don’t have any after-tax income left to invest after RRSP contributions, mortgage, debt, and other expenses.

If we look for a pattern in the statistics, TFSA balances increased remarkably after age 55. The TFSA balance as a percentage of cumulative contribution increased to 46% in the 55–59 age group and 55% in the 60–65 age group.

What is it that 55-year-olds do that 50-year-olds don’t?

By the time Canadians reach 55, they accelerate their savings. What income bracket they fall into also plays a major role. Those in the $250,000 and above income group had the highest TFSA balance of $90,302. To make sense of the two data points, we looked at the average income of those in the age of 45 to 65 and found that the 45–54 age group had the highest average income of $84,100. It declined to $70,200 in the 55–64 age group.

A dip in income probably sparked the urgency to accelerate investments and triggered a rally in TFSA contributions.

How to boost your TFSA balance past the average

Accelerating TFSA savings later in life is not the same as meeting the contribution limit and staying invested in the market. To give you an example, instead of investing $14,000 annually in your 60s, a $7,000 investment at age 50 can become $14,000 by 60. A 7% annual return can double your money in 10 years, and a 15% compounded annual growth rate (CAGR) can do so in five years.

While you invest in an RRSP, do not delay your TFSA investments. Consider investing TFSA money in growth stocks that can deliver a 20% CAGR.

A growth stock to buy at 50

Bombardier (TSX:BBD.B) is a stock worth considering because it has been beating estimates even after the turnaround. The business jet maker’s share price growth stagnated in the first half because of the uncertainty around the July 1 renewal of the Canada-United States-Mexico Agreement (CUSMA). While the United States refused to renew, the agreement is valid till 2036.

What broke Bombardier’s share price stagnation was the first-quarter earnings released on April 30, 2026. Its stock price jumped 40% as the company reported an increase in its order book from $17.5 billion to $20.3 billion. The strong demand for its business jets shows there is more room for growth. Moreover, Bombardier revised its 2026 free cash flow guidance to over $1 billion from the previous $600 million to $1 billion.

Back in 2025, Bombardier expected business jet deliveries to grow to 150 jets per year and stagnate from there. Yet the company delivered 157 aircraft in 2025 and now expects to cross this number in 2026. This shows strong demand from its flagship carrier, the Global 8000.

Bombardier stock surged 140% in 2025 and another 39% in 2026 so far. The business has more room to grow and deliver a 20% CAGR return.

The post How Much Does a Typical Canadian Have in Their TFSA at 50? appeared first on The Motley Fool Canada.

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Fool contributor Puja Tayal has no position in any of the stocks mentioned.  The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Standing in mid-2026, it’s time for the half-yearly review of your Tax-Free Savings Account (TFSA) portfolio and the necessary rebalancing for the rest of 2026. The TSX saw a V-shaped recovery from the US-Iran war as energy prices corrected.

Uncertainty continues to keep the market on its toes

The July 1 review of the Canada-U.S.-Mexico Agreement (CUSMA) was as expected. The Trump administration declined to extend the deal and proposed using certain protocols with Canada and Mexico. However, that does not evaporate the agreement, as it will be effective until July 1, 2036, provided the United States doesn’t withdraw by giving a six-month notice. U.S. President Donald Trump has not yet threatened to withdraw, but has not ruled out that option either.

The CUSMA agreement is important for Canada as 90% of its exports are tied to it. Bombardier and Magna International are among the key beneficiaries and could be particularly affected if the US withdraws. If you own either of the two stocks in your TFSA, you could continue holding them. However, consider booking profits while they still trade near their 52-week high, as they have rallied 117% and 62%, respectively, over the last year.

Investing in the next leg of growth

You could consider investing the profits from rebalancing in the seasonal stocks like Shopify (TSX:SHOP). The stock has completed its seasonal fall in May and saw flattish growth in June. The real rally will probably begin at the end of October. Now is the perfect time to accumulate more stocks.

What makes me bullish about Shopify is its accelerated revenue growth in the seasonally weak first quarter. As Warren Buffett rightly said, “Only when the tide goes out do you discover who’s been swimming naked.” Thus, I took the weak season and compared the fundamentals. The revenue growth is two-tiered.

The subscription growth is increasing because Shopify is not just adding small and medium businesses and online stores. It has expanded its base to also serve enterprises, international retailers, offline stores, and business-to-business networks. This has increased its addressable market.

The merchant solution revenue is growing as Shopify adds more tools, cross-sells its products to merchants, and helps them increase sales from their Shopify stores. It is offering its merchants artificial intelligence (AI) tools to enhance their online store performance and sell more. This shows that Shopify is expanding its business profitably.

How to make the most of Shopify stock in a TFSA

You can leverage this trend of Shopify through a short and long-term investing strategy. Buy Shopify stocks between April and June and book profits between November and January. So if you bought $10,000 worth of shares in June, which increases to $15,000 in December, sell shares worth $5,000 and keep the $10,000 invested in the TFSA for the long term. Instead of withdrawing $5,000, hold it and reinvest it in Shopify’s April dip.

Since you are reinvesting within the TFSA, your next year’s contribution room remains intact, and this rebalancing remains tax-free.

Another TFSA growth stock for the second half of 2026

You could also consider buying Celestica (TSX:CLS) stock, which corrected 15% between May and June, along with the overall AI infrastructure market. Too much money is being poured into building the infrastructure. Companies using AI have exhausted their AI budget by experimenting with expensive tokens. They are now revisiting their AI budget, asking for the return on every token used. But that did not stop hyperscalers from building AI infrastructure. In fact, telecom companies and governments are building sovereign AI, creating demand from enterprises.

AI stocks saw a pullback as SpaceX debuted on the stock market. Anthropic and OpenAI are planning their entry, making existing AI stocks compete for investor money. However, retail investors will likely return to AI chips as that is where profits are in the AI supply chain for the time being.

The post The TFSA Strategy I’d Be Following Heading Into the Rest of 2026 appeared first on The Motley Fool Canada.

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• Billionaires Are Unloading Amazon and Piling Into This TSX Stock
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• 1 Tech Stock That Has Created Millionaires and Could Keep Making More
• How to Use Your TFSA to Double Your Annual Contribution

The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Celestica and Magna International. The Motley Fool has a disclosure policy. Fool contributor Puja Tayal has no position in any of the stocks mentioned.

The Canada Revenue Agency (CRA) has set the annual contribution limit for the Tax-Free Savings Account (TFSA) at $7,000 for 2026. But you need not limit your contributions to just $7,000. The CRA’s contribution limit is the amount you can put in the TFSA from your working income. However, what you do inside the TFSA is purely a matter of your investment skill.

How to double your TFSA contributions

Let’s say you invest $7,000 in a stock that grows your money 20–30% to $8,400 or $9,400. This is not a hypothetical figure, but popular stocks like Bombardier, Enbridge, and Power Corporation of Canada have achieved these returns in the first half of 2026.

A 30% return in six months from Bombardier is lucrative and worth cashing out. You could consider selling shares worth $2,400, while keeping the $7,000 invested in Bombardier. This profit can be invested in other seasonal stocks, like Shopify (TSX:SHOP).

By doing this, you have increased your investment to $9,400 in 2026, without breaching the contribution limit. A word of caution. Frequent buying and selling of the same stock within a TFSA could attract the CRA’s attention if they feel it constitutes trading. Thus, avoid frequently rebalancing.

Another way to grow your TFSA contributions is by reinvesting dividends. Suppose you had bought 100 shares of Power Corporation of Canada a few years back. These shares will pay $267 in 2026 at a dividend per share of $2.67. You can reinvest this money to buy growth or dividend stocks.

This rebalancing and reinvesting help compound your returns. In a few years, compounding returns will match your TFSA contributions from working income. This dividend reinvestment may not attract CRA interest, as you are only buying shares. In trading, you both buy and sell shares.

A TFSA stock to buy if interest rates remain unchanged

Oil prices have dropped to pre-war levels as the market adjusts to the US-Iran war situation. In the first quarter, the RBC Consumer Spending tracker noted that Canadian household spending grew steadily despite high energy costs from the war. The cooling of oil prices could boost consumer spending.

Shopify would be a key beneficiary of increasing consumer spending. Now is a good time to invest in the stock, as a strong holiday season sale could push the stock up as much as 50%. This estimate is based on the stock’s past seasonal rally of 70% between August 2023 and February 2024 and 141% growth during the same period in 2024–2025.  

These were the years when the Bank of Canada paused interest rate hikes and began rate cuts in 2024. These were also the years when oil prices corrected after the Russia-Ukraine war, and Air Canada stock touched a $25 share price in peak seasons. The sharp correction in oil prices to US$69/barrel eases concerns of an interest rate hike. All these macro signals point to a strong holiday shopping season.

A TFSA stock to buy if the US-Iran war continues

The US and Iran are on a ceasefire at the time of writing. If the war escalates, Canadian energy stocks could once again see a rally. Canadian Natural Resources (TSX:CNQ) is a stock to buy in small amounts throughout the correction. Owning Canada’s largest oil sands reserves, it has a cost advantage and can sustain a US$50/barrel oil price. Considering the cyclical nature of oil prices, $45–$50 is the ideal entry point for CNQ stock as you can lock in a 5% yield.

If there is another energy shock, it will be a key beneficiary because of its low cost and slowly depleting oil sands reserves. During weak periods, the stock can pay dividends that you can reinvest in growth stocks. During a cyclical rally, you can book a profit and rebalance your portfolio. Moreover, you can enjoy annual dividend growth between 6% and 18%.

Final thoughts

Shopify and CNQ are perfect TFSA stock picks for rebalancing and reinvesting, thereby compounding returns.

The post How to Use Your Annual TFSA Room to Double Your Contributions appeared first on The Motley Fool Canada.

More reading

• Here’s How I’d Use My TFSA to Turn $25,000 Into $225 Every 3 Months
• How to Use Your TFSA to Double Your Annual Contribution
• 1 Canadian Dividend Stock Down 13% to Buy and Hold Forever
• 5 TSX Dividend Stocks for Steady Cash Flow in Any Market
• 2 Canadian Stocks That Look Ready to Break Out This Year

The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Air Canada, Canadian Natural Resources, and Enbridge. The Motley Fool has a disclosure policy. Fool contributor Puja Tayal has no position in any of the stocks mentioned.

Starting savings early in life will determine your financial future. A good start compounded for years can give you the returns to achieve financial goals without accumulating debt. If we take 25 as the age to start serious savings, you will have to accelerate savings for the next four to five years. Because an average Canadian in the 25–29 age group had a Tax-Free Savings Account (TFSA) balance of $13,967 in the 2024 tax year. Canadians under 35 had an average Registered Retirement Savings Plan (RRSP) balance of $15,000.

This average is not even close to what you really need. Because if we look at the older generation who have been saving up for retirement, they have ambitious retirement goals, which they believe they can’t achieve. According to BMO’s Annual Retirement Survey, Canadians believe they need $1.7 million to retire, but 36% believe they may not achieve this goal.

Don’t let fear of missing out stop you from saving

Why are we talking about retirement at age 25? To give you a reality check of the mistakes most older Canadians made. Had they started investing early in life at age 25, a $1.7 million retirement portfolio, along with other financial goals, could be a reality.

You can learn from their mistakes and make investing a routine early in life. From all the income you earn, set aside 5% for savings. If in a particular month you miss out on saving, consider making up for it next month. Consider that 5% as an expense you have to pay.

If you are not comfortable doing the 5% math, set a fixed amount that you know you can easily commit to every month. It can be $100, $200, or $500. Forget about the $1 million goal, as that will only lead to procrastination. Just focus on the next step. Taking one step at a time helps cover miles.

Suppose you start saving $100 every month and successfully save for 12 months, you can challenge yourself and save $150. Your TFSA has the contribution room for $500 per month in savings, and $1,000 more. Keep increasing your savings by $50 or $100 as your income grows.

Where to put your TFSA savings?

A TD Bank survey found that many millennials and Gen Zs use a TFSA as a normal savings account. Instead of investing their money in stocks, they keep it idle as they want to use it in the next few months. Some even state that they have not saved enough to invest.

It is true that one should first build an emergency fund before investing, and only invest in stocks the amount they are willing to lose. A smart strategy will be to build an emergency fund and an investment portfolio simultaneously. Emergencies will keep coming. In the process of filling the emergency bucket, which has an open tap at the bottom, you will never get out of the firefighting zone.

Here, the savings jar technique helps. Considering $100 per month as an expense is as good as investing the money you are willing to lose. A lot can happen with $100. Since your life doesn’t depend on this $100, you can invest it in high-risk, high-return stocks like Ballard Power Systems (TSX:BLDP).

A TFSA stock ideal for 25-year-old Canadians

Martin Neese became the chief executive officer (CEO) of Ballard in July 2025 and has cut operating expenses by 40% in his tenure. He recently made one of the biggest strategic moves for Ballard. The problem with adopting hydrogen fuel cells was that clients didn’t have access to hydrogen. Thus, Ballard acquired hydrogen fuel company GeoPura for $515 million in a cash-stock deal. Ballard will pay $154 million in cash and the remaining in shares, giving GeoPura a 14.4% stake in the combined company.

This will help Ballard offer both hydrogen fuel and fuel cells, expanding its addressable market. GeoPura will also bring its supply deals with Microsoft, Walt Disney, Netflix, and the U.K. Ministry of Defence.

Ballard is just beginning its return journey. It is a stock to buy and hold for decades. BLDP stock has the potential to make its shareholders millionaires once its technology is widely adopted, not just in transportation but also in data centres.

The post What the Typical 25-Year-Old Canadian Has Saved in a TFSA and RRSP appeared first on The Motley Fool Canada.

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• I’d Put $50,000 in My TFSA to Collect $111 in Monthly Dividends

Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends Microsoft, Netflix, and Walt Disney. The Motley Fool has a disclosure policy.

Are you contributing enough to your Tax-Free Savings Account (TFSA)? The $35,235 average TFSA balance of Canadians in the 50-54 age group in 2024 might put you at ease. The average TFSA balance of those in the +50 age group is not even 50% of their $95,000 cumulative contribution room. It doesn’t mean that they haven’t been contributing. But they have also been withdrawing from the TFSA.

What should be your TFSA focus at age 50?

With just 10-15 years left to earn active income before you retire, it is time to build a sizeable TFSA portfolio which can compound even during retirement. Unlike a Registered Retirement Savings Plan (RRSP), which ends at age 70, a TFSA continues till your death. You can keep contributing till your last breath and pass it on to your spouse tax-free by naming them as successors in your TFSA.

At 50, retirement takes priority over other goals. Maxing out your TFSA contributions can get you started on wealth creation. Once the amount is inside the TFSA, the CRA won’t bother you as long as you invest in publicly listed securities on well-known exchanges and do not trade.

Trading and investing are poles apart. Trading involves the constant buying and selling of shares, wherein you may not hold shares or hold them for a few days or weeks. Investing is when you buy a stock, hold it for several months or years, and later sell it.

Within the TFSA, build a core and satellite portfolio. The core portfolio is where 80% of your contribution will go, and you won’t withdraw from it. The remaining 20% will be the satellite portfolio, which you can use for emergencies and other needs. All TFSA withdrawals can be limited to this portfolio.

TFSA stocks for core portfolio

Within the core portfolio, invest in growth stocks and exchange-traded funds (ETFs) that can give you 15-20% annual returns at a minimum. Even a defensive stock like Loblaw (TSX:L) gave 20% average annual returns in the last five years. Past returns do not determine future returns, but can be used to analyze how the stock reacts to certain economic conditions.

Loblaw is a superstore, pharmacy, bank, and apparel retailer in Canada. Its performance is directly linked to consumer spending and economic growth. The stock has a defensive nature; it remains flat in a bear market and grows in a bull market. But in the long term, it grows, making it an ideal stock for a core portfolio. Shopify and Descartes Systems are other good stocks for growth in your core portfolio.

Within the core portfolio, you can determine a 60:40 or 70:30 ratio for growth and dividend stocks. When your growth stocks give strong returns, you can sell some stocks and reinvest that profit in high-yield dividend stocks. TFSA contribution from your working income is best used in growth stocks, and profits booked from here can be moved to passive income.

TFSA stocks for satellite portfolio

Now, in the satellite portfolio, allocate 20% of your TFSA contribution here. You can use this money to withdraw or invest in high-risk stocks like Ballard Power Systems, which can grow your money threefold in a few months, or fall if risks are realized. If profits are realized, you can treat yourself by withdrawing the profits. That way, you can reap the returns while building a sizeable TFSA balance.

Investors, take note

A little planning and discipline can turn around your finances. A TFSA’s tax-free investment growth and tax-free withdrawals can enhance your investments and make a tax-free million-dollar portfolio a reality in 15-20 years.

The rebalancing can continue even after retirement. At 50, you still have time on your side to make long-term investing work for you.  

The post The Average TFSA Balance for Canadians at 50 appeared first on The Motley Fool Canada.

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The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Descartes Systems Group. The Motley Fool has a disclosure policy. Fool contributor Puja0 Tayal has no position in any of the stocks mentioned.

The Bank of Canada’s monetary policy decisions can significantly impact the stock market. This is because its monetary policy determines how much money will flow into the economy. Think of the Bank of Canada as a dam and the interest rate as a large door controlling the flow of the river. The Bank of Canada lowers the interest rate barrier, allowing money to flow into the economy, and raises the barrier to reduce money flow. Hence, investors should follow what the Bank of Canada is saying.

The Bank of Canada speaks up again

The Bank of Canada has maintained its interest rate at 2.25% since October 2025, despite concerns of a rate hike. When economic growth is weak, interest rates need to remain low so that money flows into the economy and supports growth.

On the contrary, rising inflation from higher oil prices triggered by the US-Iran war is putting pressure on the central bank to increase interest rates. A higher interest rate will reduce the money supply. When people don’t have money, consumption will slow and prices will fall. However, that will affect economic growth, which is already weak.

Now, the Bank of Canada would hold interest rates steady until inflation data shows signs of widespread and more persistent inflation pressures.

Why so?

Inflation is rising because of the war, and it is not clear if the war will be prolonged. If the US and Iran reach a negotiation and open the Strait of Hormuz, energy prices would fall drastically, and inflation would be contained. This would leave an interest rate hike ineffective, as it takes months for the hike to seep into the economy and make a difference.

It is safe to say that interest rates will remain stable for the next few months, but a rate hike cannot be ruled out. Right now, stocks that will benefit from rate cuts are trading low, as the expectation is of a rate hike.

TFSA stocks to buy if you expect interest rates to increase

A rise in interest rates reduces the money supply and pulls the stock market down. In such a market, bank and grocery stocks outperform as investors move to fixed deposits that offer a higher risk-free return and consume affordable instead of premium products.

Royal Bank of Canada (TSX:RY) stock has already surged 31% from its March dip to a new high on the back of strong performance from wealth management and capital markets. An interest rate hike could bring strong growth in net interest income from personal and commercial banking, which accounts for 65% of its interest income.

A rate hike could see an immediate correction in the wealth management business as many investors would shift from risky stocks to term deposits. It would take time for the rate hike to reflect in loan and deposit numbers, and thus might delay its share price rally.

Supermarket chain Loblaw’s stock surged 6% year-to-date as uncertainty around interest rate decisions kept the stock volatile. You can buy and hold this stock for the long term as it will grow in an uncertain economy.

TFSA stocks to buy if you expect the Bank of Canada to cut the interest rate

A rate cut will only come when economic growth takes a back seat, and fears of a recession emerge. To ease fears and support growth, the Bank of Canada cuts the interest rate and makes borrowing cheap. This increases the gold price, and investors move away from term deposits to dividend stocks for better yields. Growth stocks also do well, as money is easily available, encouraging capital investment.

Lundin Gold (TSX:LUG) will benefit from a low-interest-rate environment as its low production cost increases profits when the gold price rises. Central banks worldwide have been buying gold amidst global tensions, driving the gold price. Its variable dividend policy of distributing surplus free cash flow above $300 million makes it a lucrative dividend yield as well.

The stock has dipped 31% since April, when bank stocks surged. Now is a good time to buy and hold Lundin Gold stock. Its price will jump when discussions around a rate cut begin. Until then, you can enjoy variable dividends.

The post The Bank of Canada Speaks Up Again: Here’s What to Buy for a TFSA Now appeared first on The Motley Fool Canada.

More reading

• Here’s the Average TFSA and RRSP at Age 45
• 5 Canadian Stocks Beginners Can Buy and Hold Forever
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• How I’d Invest $250,000 in Canadian Dividend Stocks for Lifelong Income
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Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

How much money do you need to retire? The classic question every Canadian has. You can use the Motley Fool retirement calculator to make a personal retirement goal, as every person has different financial needs. On a more generic note, a million-dollar retirement is a dream figure. Looking at growing inflation, Canadians are aiming for a $1.7 million portfolio to retire, according to BMO’s Annual Retirement Survey.

Determining your TFSA balance for a financially healthy retirement

You can keep adding to the retirement pool, and this will only grow at an exorbitant level. However, don’t lose your sleep over such numbers, as you may not really need that much to retire. In fact, 36% of Canadians who aim for a $1.7 million portfolio believe they may not achieve this goal. However, chasing stars can lead you to mountains.

Let’s take one step at a time and identify your retirement requirements. If you are in your 40s, assess your expenses and determine which will no longer be there when you turn 65. For instance, your mortgage would probably be over, childcare expenses will be gone, and your daily commute to work will be reduced. That would probably be replaced by healthcare and medical bills.

Suppose you earn $70,000–$90,000 annually, and you seek the same amount for your passive income to pay. The Canada Revenue Agency (CRA) will cover for $20,000 to $27,000 of the expense from the Canada Pension Plan (CPP) and Old Age Security (OAS) pension. These are the 2026 payout figures.

You want your Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA) to cover the remaining $50,000–$60,000. Considering a 4% withdrawal rule, a $1.25 million to $1.5 million retirement pool can give you a $50,000 to $60,000 annual payout.

Can you achieve a $1.5 million retirement portfolio?

According to Statistics Canada, 45–54-year-old Canadians have an average TFSA balance of $40,500 and an average RRSP balance of $173,500. Assuming that 50% of this amount is dedicated to a retirement portfolio, $107,000 is a good start at age 45.

However, if you don’t have even $100,000 in retirement savings, it’s time to pull up your sleeves and focus all your savings on retirement. If you start with a $50,000 portfolio today and invest $12,000 annually in a portfolio with 12% compounded annual returns, you can achieve a $1.45 million portfolio 20 years from now.

Two decades from now, $50,000 may not be your requirement, but it can at least help you cope with daily expenses. Someone earning $70,000 annually could consider maxing out on the $7,000 TFSA contribution and investing the remaining $5,000 through an RRSP. If you only have $50,000 in retirement savings at age 45, consider investing 15–25% of your income in retirement instead of 10%.

TFSA stocks to accelerate your retirement pool

Another way to boost your savings is by investing in high-growth stocks through a TFSA and increasing portfolio returns. The iShares NASDAQ 100 Index ETF (CAD-Hedged) (TSX:XQQ) can help you earn up to 20% average annual returns in 10 years. The Nasdaq Index houses the most stocks in the artificial intelligence (AI) supply chain. So far, the AI infrastructure is enjoying the rally. In the future, AI applications will see growth and drive Nasdaq to new highs.

Royal Bank of Canada (TSX:RY) is another stock to buy and forget. Its wealth management and capital market division performs well in a growing economy. Its banking business performs well when interest rates rise. The stock has surged 120% in the last five years, beating its previous 134% rally between 2009 and 2019. This shows that the bank’s growth has accelerated, and it could accelerate further as Canada invests in energy and AI infrastructure.

While the above two stocks can help you beat 12% returns requirement, CT REIT (TSX:CRT.UN) can give you a 5.2% annual yield, 3% dividend growth, and a dividend reinvestment plan to compound the passive income. Some of the most obvious stocks give the best returns.

The post The TFSA Balance You’ll Probably Need to Retire Well in Canada appeared first on The Motley Fool Canada.

More reading

• 5 Dividend Stocks to Put in a Canadian Income Portfolio
• What Your TFSA Could Look Like With $10,000 and Earning $41 in Monthly Income
• A 5% Dividend Stock Paying $39.30 Every Month
• How I’d Use a $10,000 TFSA to Generate $850 a Year
• Here’s the Average TFSA and RRSP at Age 45

Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Building wealth is one thing, but preserving it is another. Having built a $100,000 portfolio, you might want to book profits on cyclical stocks trading near their all-time high. Where to keep this profit? In value and dividend stocks, or the next growth drivers. The Tax-Free Savings Account (TFSA) makes such rebalancing tax-free. However, while looking for value, avoid some stocks that could be a value trap and destroy your portfolio.

Canadian stocks that could destroy your portfolio

Not every stock that has fallen is a buy-the-dip. Some even struggle with business fundamentals that make the price correction sensible.

Timbercreek Financial

For a long time, I have been bullish on Timbercreek Financial (TSX:TF) as it sustained its dividends despite a slowdown in loan turnover. Timbercreek offers short-term mortgages to REITs to build, develop, and buy income-producing properties. However, the weakness in commercial REITs brought by the work-from-home and hybrid offices increased Stage 2 and Stage 3 loans of Timbercreek. Although the lender is seeing an increase in new loans, the growth is slower than expected. The slow growth of new loans and falling interest rates is stressing its free cash flow.

In the first quarter of 2026, it paid 98.5% of its distributable income and 138% of earnings per share as dividends. Timbercreek has set aside $3.7 million in expected credit losses that reflect the sale prices for two of the Stage 3 office/retail net mortgages sold in the second quarter.

The stock dipped as much as 13% since February, which inflated its dividend yield. However, I see more downside for this stock if loan default continues. It may have to slash dividends if the loan portfolio doesn’t improve significantly.

Any rebalancing of the portfolio from growth to dividend stocks should avoid Timbercreek Financial. Instead, you could lock in a 6% yield with SmartCentres REIT. It is safer thanks to its largest tenant, Walmart, bringing stable rental income and attracting other retailers.

Dye & Durham

Another stock to stay away from is Dye & Durham (TSX:DND). The legal practice management solutions provider has been facing management issues for over a year since the founder walked out of the boardroom. The largest shareholders are now running the board, and they recently announced the departure of George Tsivin as chief executive officer (CEO) without stating the reason.

Considering that the third quarter is seasonally weak and the fourth quarter is strong, the earnings have failed to engage investors. Declining revenue for the last four quarters is pulling down the stock price. Although Unity software is a mission-critical application and earns a high operating margin, high finance costs have kept the company in the red. The interest cost on its debt alone is 37% of the revenue.

The new board has to first stabilize revenue declines and get a CEO who can turn around the company. Until then, Dye & Durham will keep destroying your portfolio value.

Better stock to preserve the $100,000 portfolio

If a software stock is what you seek, Descartes Systems (TSX:DSG) is a better value pick. The supply chain management solutions provider continued to grow its revenue and net income by 15% and 34%, respectively, in the first quarter. Despite such strong numbers, the stock has dipped 14% in June and is trading at 25 times its forward earnings per share. Rising earnings will further reduce its valuations.

The second half is seasonally strong for Descartes as momentum picks up in the e-commerce segment. It is a stock to buy the dip as it has a net cash position to withstand a slowdown and more upside when trade momentum picks up.

The post 2 Canadian Stocks That Could Utterly Destroy a $100,000 Portfolio appeared first on The Motley Fool Canada.

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The Motley Fool has positions in and recommends Dye & Durham. The Motley Fool recommends Descartes Systems Group, SmartCentres Real Estate Investment Trust, and Walmart. The Motley Fool has a disclosure policy. Fool contributor Puja Tayal has no position in any of the stocks mentioned.

The TSX Composite Index saw a sharp pullback in March due to the US-Iran war. However, it quickly recovered, maintaining its 30% rally since June 2025. In this growth market, here are 10 stocks every Canadian should own to make the most of the second half of 2026.

Energy and infrastructure stocks

Energy stocks were the biggest gainers in 2026. While oil and gas stocks corrected as prices normalized, energy infrastructure stocks continue to make new highs. This happens as the Canadian government accelerates sovereign artificial intelligence (AI) infrastructure. At the bottom of the five-layer AI infrastructure is energy.

Capital Power (TSX:CPX) builds and maintains power plants. In addition, it is investing large amounts in building capacity in the United States to power AI data centres. It was a dividend growth stock, but large capital spending could slow or put dividend growth on the back burner. With every new capacity addition, its stock price will grow as AI data centres absorb the new capacity.

Bird Construction (TSX:BDT) also saw revived growth triggered by Canada’s infrastructure push. After several years of slow construction, the policy push has boosted Bird’s order backlog to $11.1 billion in 2025 from $$7.7 billion in 2024. It is building a 300MW Saskatchewan AI Facility and Woodfibre LNG Facility. Both are scheduled to come online in 2027. The next two to five years could see growth spurts with new order wins amidst the infrastructure push.

AI trend

The other four layers of the AI infrastructure are chips, infrastructure, models, and applications. Celestica (TSX:CLS) will benefit from the chips segment as it has three hyperscaler clients. The company is designing and manufacturing Ethernet switches for enterprises and communications infrastructure. It is also expanding its facilities in Taiwan and the United States. The 20% June dip is a buying opportunity as AI IPOs saw some profit booking in other AI stocks.

The iShares NASDAQ 100 Index ETF (CAD-Hedged) (TSX:XQQ) is a good way to get exposure to the entire AI supply chain. Anthropic and OpenAI plan to debut on the Nasdaq in the coming few months. The XIT ETF can give you exposure to them. I would avoid a direct stock purchase as these IPOs will likely list at a premium. Understand that many venture capitalists and chip makers have invested billions in the above two companies. An IPO could be an exit strategy for them, considering that the billions in valuation have no profits to show for years.

The XQQ ETF will give you diversified exposure, helping you benefit from upside, while limiting downside risk.

Recovery stocks

Having all investments in AI-related stocks could be risky. Thus, diversify into value stocks that have taken a hit from external factors but have fundamentals to revive.

Descartes Systems (TSX:DSG) took a hit after the US tariffs affected trade volumes. Its supply chain management solutions are still in demand, but growth is slow. The company is using this weak trade environment to reduce costs, acquire companies for their technology or customers, and grow revenue. It has zero debt and is growing its cash reserve. With the right technology, exposure, and financial stability, Descartes is well placed to ride its seasonal second-half rally from e-commerce logistics demand.

Speaking of e-commerce, Shopify (TSX:SHOP) is a buy right now before it begins the holiday season rally. Shopify has attained consistent double-digit revenue and free cash flow growth. Its AI tools are also contributing to the revenue. A bull market and strong consumer demand create a favourable environment for a 40–50% seasonal rally.

Dividend and defensive stocks

Apart from the usual seasonal stocks, dividend stocks can bring stability to your portfolio.

A 6.2% yield from SmartCentres REIT can give assured monthly payouts as it earns 23% of its rent from Walmart. The REIT has been paying monthly distributions for 21 years without a dividend cut, making it an evergreen dividend stock to buy and hold. Cogeco Communications is among the stable dividend stocks in the telecom space. Its 30% dividend payout ratio and over 6% dividend yield make it an attractive dividend investment to earn inflation-adjusted passive income.

A small portion of your portfolio should be invested in defensive stocks like Lundin Gold and discount retailer Loblaw to balance downside risk.

The post 10 Stocks Every Canadian Should Own in 2026 appeared first on The Motley Fool Canada.

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The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Capital Power, Celestica, Cogeco Communications, Descartes Systems Group, SmartCentres Real Estate Investment Trust, and Walmart. The Motley Fool has a disclosure policy. Fool contributor Puja Tayal has no position in any of the stocks mentioned.

A Tax-Free Savings Account (TFSA) is a vault in which you can build wealth and protect it from the Canada Revenue Agency’s (CRA’s) tax claws. The money you contribute to the TFSA is the after-tax income, which means that if you contribute $7,000 in 2026, you will pay tax on it as that amount is included in your 2026 taxable income.

A quick revision of a TFSA’s tax benefits

The payment of tax now frees up capital to be invested in well-regulated, publicly traded securities on both the TSX and the Nasdaq. Now, how much you can contribute is limited to your contribution room, but there is no limit on how much investment income you can earn. However, note that while you can occasionally buy and sell shares, frequent buying and selling is not allowed. Trading is considered a business income in the CRA’s eyes, and a TFSA only allows tax-free investment income.

Investing your TFSA’s limited contribution room in dividend stocks may not be the most efficient use of its tax benefits. However, you can double your contribution without overcontributing.

How to use a TFSA efficiently

The TFSA is designed for high-growth stocks, the stocks that can make you a millionaire. The promise of no taxes once the money is contributed to the TFSA can be a gold mine if it is invested, rebalanced, and reinvested efficiently.

Within a TFSA, you can adopt a core-satellite strategy, with 70% allocated in core and 30% in satellite. The core portfolio could comprise big tech names, like Broadcom and Shopify, which can double your money in two years. They have strong fundamentals and long-term growth opportunities. They are those stocks you want to buy at the dip.

Meanwhile, satellite stocks are high-risk, high-growth stocks, like Hive Digital Technologies and Ballard Power Systems (TSX:BLDP). If the risk works, they can grow your money multiple-fold in a short span. Hive is working as the data center provider for Canada’s sovereign artificial intelligence. One order from a hyperscaler can send Hive stock soaring.

Ballard Power System, on the other hand, has been soaring but fell in June after the Weichai Power joint venture officially ended with the exit of their board members. The dip is normal as investors book profits from the recent triple-digit rally. This is a good entry point. If there is a widespread adoption of hydrogen fuel cell technology, Ballard’s stock will skyrocket. A hydrogen fuel cell has the ability to replace or co-exist alongside petrol and gas as a form of transportation fuel.

The art of rebalancing

The most efficient way to use a TFSA is to rebalance whenever a sharp surge in one stock drastically shifts the core-satellite allocation. For instance, you invested $10,000 in a TFSA in June 2025, of which $7,000 was invested in Broadcom and $3,000 in Ballard Power. After a year, your portfolio has grown to $18,366, and portfolio allocation has changed to 57%-43%. The market forces moved the share prices of Broadcom and Ballard Power.

Clearly, Ballard outperformed Broadcom, creating an opportunity to rebalance $2,392.32. Now, this amount has to go back to the core portfolio for the allocation to return to 70:30. So, you sell Ballard shares worth $2,392 and buy Shopify shares.

Using rebalancing to create a passive income portfolio

Another strategy is to use the rebalancing amount and invest it in high-yield dividend stocks like Cogeco Communications or dividend growth stocks like Canadian Natural Resources. Any profit you book from growth stocks can be converted into regular dividend payouts. On one side, your contribution keeps generating wealth. On the other side, the profit booking converts into tax-free passive income.

The post How to Use Your TFSA to Double Your Annual Contribution appeared first on The Motley Fool Canada.

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The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Broadcom, Canadian Natural Resources, and Cogeco Communications. The Motley Fool has a disclosure policy. Fool contributor Puja Tayal has no position in any of the stocks mentioned.