Turn Your 2026 TFSA Contribution Into $70,000 (or More!)

A Tax-Free Savings Account (TFSA) is the best way to turn a big contribution into real wealth because it lets growth compound without tax drag. When you hit a winner, you keep the whole gain. When it pays a dividend, you can reinvest every penny. With a $7,000 contribution, the goal is not to “save harder.” It’s to let time and growth do the heavy lifting, and a TFSA keeps more of that upside in your pocket.

$7K to $70K?

To turn $7,000 into $70,000, you need two ingredients: a strong return and enough time for compounding to kick in. A 10-bagger rarely happens in a year or two. It happens when a business keeps growing through cycles, and the market eventually pays up for it. Think of it like pushing a snowball down a hill. The first few rolls look small, then it suddenly looks ridiculous.

The math also keeps you honest. Roughly speaking, a 20% annual return can take about 13 years to turn $7,000 into around $70,000. At 25%, it’s closer to about 10 years. That’s why the “best way” is not chasing the hottest headline. It’s picking a business that can keep compounding, then giving it room to work inside the TFSA without panic-selling every time the chart gets moody.

The last piece is behaviour. You need a plan before you buy. If the stock drops 30% after you buy, you need to know whether you would add, hold, or walk away. You also need to treat the TFSA like a long game. Constant switching often kills the very compounding you’re trying to capture. One or two high-quality growth picks can do more than a crowded basket of half-convictions.

Stocks to watch

NFI Group (TSX:NFI) builds buses and coaches, and it sits in the middle of two big forces: replacement demand for aging fleets and the long shift toward zero-emission transit. Over the last year, the stock dealt with a battery recall issue, but it also showed real operating momentum. In its third quarter of 2025, it reported revenue of US$879.9 million, up 23.7% year over year, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of US$80.9 million, up 52.1%. It also reported a backlog of $13.2 billion and liquidity of $386 million, offering financial breathing room to keep improving.

Aritzia (TSX:ATZ) sells fashion basics and seasonal hits through boutiques and e-commerce, with the United States as the big growth engine. Over the last year, it looked like a stock that regained its stride and then hit the gas. In its third quarter of fiscal 2026, it reported net revenue of $1.04 billion, up 42.8%, and net income of $138.9 million. Diluted earnings per share (EPS) came in at $1.16, and adjusted EBITDA reached $207.6 million, or 20% of net revenue. It also reported comparable sales up 34.3% and a boutique count of 139, up from 127 a year earlier, showing expansion and demand moving in the same direction.

For future outlook and valuation, these two names offer very different paths to a 10-bagger. NFI can surge if it converts backlog into profitable deliveries, keeps margins improving, and puts recall issues behind it. It carries bigger execution risk, plus cycle risk tied to government budgets, supply chains, and program timing. ATZ can surge if it keeps winning in the United States, protects margins, and avoids the classic retail trap of growing too fast and discounting too hard. It usually trades at a richer valuation than “turnaround industrial” stories when momentum looks good, so any stumble can hit the stock quickly.

Bottom line

Both can work in a TFSA, but the ride will not feel the same. The clean takeaway is this: turning $7,000 into $70,000 takes compounding, not magic. A TFSA helps because it protects the upside and lets you reinvest freely. NFI can offer a high-upside turnaround tied to electrification and backlog execution, but it demands patience and a strong stomach. ATZ offers a clearer compounding story driven by U.S. growth and improving profitability, but it still carries retail and valuation risk. Pick the one you can actually hold through a rough year, because that is usually the real secret behind making $70,000, or even more.

The post Turn Your 2026 TFSA Contribution Into $70,000 (or More!) appeared first on The Motley Fool Canada.

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More reading

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• 2 Exceptional Stocks for Your $7,000 TFSA Contribution in 2026
• Momentum Is High, and These 3 Stocks Could Benefit the Most in 2026

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Aritzia. The Motley Fool recommends NFI Group. The Motley Fool has a disclosure policy.