In case you are 55 and your TFSA (Tax-Free Financial savings Account) stability is sitting round $40,000, you aren’t alone. However you’re leaving critical cash on the desk. The excellent news? You continue to have time to vary that. And a dividend royalty inventory like Topaz Power (TSX:TPZ) may very well be the type of holding that helps you get there.
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Most Canadians at 55 are lacking a large TFSA alternative
The typical TFSA stability for Canadians aged 55 to 59 ranges from $39,200 to $43,519, based mostly on information from the Canada Income Company and Statistics Canada. That quantity sounds cheap till you place it in context.
By 2026, the entire lifetime TFSA contribution room for any Canadian who was 18 or older when this system launched in 2009 may have grown to $109,000. It means the standard 55-year-old has solely used about 38% of their whole tax-free contribution area. There’s roughly $65,000 to $70,000 of unused room sitting idle.
Most Canadians deal with their TFSA like a financial savings account and maintain money or assured earnings certificates in it. These devices are protected however not positioned to ship inflation-beating returns over the long run.
The repair is easy. Cease saving inside your TFSA. Begin investing.
Topaz Power can turbocharge your TFSA earlier than retirement
Topaz is a Canadian royalty and infrastructure firm. It doesn’t drill wells however earns royalties when producers pump oil and pure fuel from land the place Topaz holds royalty pursuits.
This enterprise mannequin comes with one thing most buyers love: predictable money circulation with out the capital spending tied to working a standard power firm.
In Q1 of 2026:
- Topaz reported file royalty manufacturing of 24,609 barrels of oil equal per day, a rise of 10% yr over yr.
- Pure fuel manufacturing hit a brand new file at 105.7 million cubic toes per day.
- Whole liquids manufacturing additionally set a file, rising 7% yr over yr.
Whole first-quarter income and different earnings reached $94.6 million. The infrastructure facet of the enterprise, which incorporates pure fuel processing services, delivered a 98% utilization fee and a 92% working margin.
Topaz elevated its quarterly dividend by 3% to $0.35 per share, or $1.40 per share annualized, translating to a ahead yield of 4.5%. Valued at a market cap of $5 billion, Topaz Power has returned near $1 billion to shareholders since its inception.
The mathematics that would rewrite your retirement
Run the numbers on what a well-invested TFSA can really do.
When you begin with $40,000 right this moment, add $500 monthly, and earn an 8% annual return in an fairness portfolio, your stability will climb to over $178,000 by age 65.
The identical beginning stability in a 3% money account yields roughly $124,000. That distinction of greater than $54,000 is totally tax-free.
A inventory like Topaz suits squarely into that growth-oriented fairness technique. Its dividend yield supplies recurring passive earnings, whereas the royalty mannequin affords stability.
And its 2026 steering, which now factors to the higher finish of its manufacturing vary, suggests the underlying enterprise has momentum. Topaz president and CEO Marty Staples famous through the earnings name that drilling exercise throughout the corporate’s acreage stays sturdy.
Operators are actively increasing within the Clearwater, the Montney, and several other different high-return performs. The corporate additionally expects waterflood injection charges at key acreage to double by way of 2026, a growth Topaz says it didn’t underwrite when it initially acquired a lot of the land.
Maximizing unused TFSA contribution room, shifting out of cash-based holdings, and anchoring your portfolio round a dividend-paying royalty firm with a confirmed monitor file of earnings development may meaningfully enhance your retirement image.
Topaz Power is a gradual, income-generating machine. And proper now, that’s precisely what a TFSA at 55 wants most.
