In case you are 55 and your TFSA (Tax-Free Financial savings Account) steadiness is sitting round $40,000, you aren’t alone. However you might be leaving critical cash on the desk. The excellent news? You continue to have time to alter that. And a dividend royalty inventory like Topaz Vitality (TSX:TPZ) may very well be the sort of holding that helps you get there.
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Most Canadians at 55 are lacking an enormous TFSA alternative
The typical TFSA steadiness for Canadians aged 55 to 59 ranges from $39,200 to $43,519, based mostly on knowledge from the Canada Income Company and Statistics Canada. That quantity sounds affordable till you set it in context.
By 2026, the overall lifetime TFSA contribution room for any Canadian who was 18 or older when this system launched in 2009 could have grown to $109,000. It means the everyday 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 secure however not positioned to ship inflation-beating returns over the long run.
The repair is straightforward. Cease saving inside your TFSA. Begin investing.
Topaz Vitality 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 move with out the capital spending tied to working a conventional vitality firm.
In Q1 of 2026:
- Topaz reported document 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 document at 105.7 million cubic toes per day.
- Complete liquids manufacturing additionally set a document, rising 7% yr over yr.
Complete first-quarter income and different earnings reached $94.6 million. The infrastructure aspect of the enterprise, which incorporates pure fuel processing amenities, delivered a 98% utilization charge 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 Vitality 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.
For those who begin with $40,000 at the moment, add $500 monthly, and earn an 8% annual return in an fairness portfolio, your steadiness will climb to over $178,000 by age 65.
The identical beginning steadiness 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 gives 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 robust.
Operators are actively increasing within the Clearwater, the Montney, and a number of other different high-return performs. The corporate additionally expects waterflood injection charges at key acreage to double by way of 2026, a improvement 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 observe document of earnings progress might meaningfully enhance your retirement image.
Topaz Vitality is a gradual, income-generating machine. And proper now, that’s precisely what a TFSA at 55 wants most.
