Monthly $100 Contributions: How Your 401(k) and TFSA Investment Could Grow Over a Decade

The power of consistent, long-term investing lies in one fundamental principle: compound growth amplifies modest contributions into substantial wealth. A disciplined approach to retirement savings—even with small monthly deposits—can yield remarkable results when given sufficient time to work.

What $100 Monthly Actually Becomes

Consider a straightforward scenario: you invest $100 per month into a 401(k) or TFSA investment vehicle. Assuming your portfolio achieves a 10% average annual return (the historical performance of the broader stock market over five decades), here’s what your timeline looks like:

The mathematics reveal an exponential pattern—your money doesn’t just grow linearly. Each contribution earns returns, and those returns themselves generate additional returns. This compounding effect is why delaying retirement savings even by a few years carries a substantial opportunity cost.

Maximizing Your TFSA Investment and Employer Matching

For those with access to an employer match through their 401(k) plan, the potential multiplies immediately. Many employers contribute 50-100% of your contributions up to a certain threshold. If your company matches at a 1:1 ratio, your effective monthly investment doubles to $200—half from your pocket, half from your employer. Over 10 years with the same 10% return assumption, you’d accumulate approximately $38,000 instead of $19,000.

This employer contribution is essentially free money. Similarly, TFSA investment accounts offer tax-free growth, making them equally valuable for retirement accumulation when available.

The Discipline Factor

Building meaningful retirement wealth requires two non-negotiable elements: consistency and time. You don’t need a large salary to retire comfortably; you need the habit of regular contributions and the patience to let markets work in your favor. Whether you’re maximizing a 401(k), utilizing a TFSA investment platform, or splitting between accounts, the principle remains unchanged—start now, contribute regularly, and resist the temptation to touch that money.

Small monthly deposits compound into life-changing sums. At $100 per month, most people don’t even notice the reduction in their paycheck, yet decades later, they’re looking at six-figure retirement accounts ready to sustain them through their later years.