The Lesser-Known Habits That Most TFSA Millionaires Share

By Aditya Raghunath at The Motley Fool Canada

Most people know the basics of a Tax-Free Savings Account (TFSA): you contribute money, invest it, and pay zero tax on any gains. But knowing the rules and actually building wealth inside a TFSA are two very different things.

I think Kraken Robotics (TSXV:PNG) is the type of stock TFSA millionaires look for. It is a fast-growing Canadian defence tech company with record results in 2025 and one of the most compelling growth outlooks on the TSX.

If you want to understand how TFSA millionaires think, and where a stock like Kraken fits, keep reading.

What TFSA millionaires do differently

The TFSA was introduced in 2009. Since then, the cumulative contribution room has grown to $109,000, though the exact amount depends on when you turned 18. A small number of Canadians have turned that room into serious wealth.

According to the Globe and Mail, 352 Canadians held over $1 million in their TFSAs at the end of 2024. Given that there are 17,000 TFSA holders in Canada, about 2% are TFSA millionaires.

Here is what those investors tend to have in common.

They contribute as much as possible and as early as possible. In 2025, the annual contribution was raised by $7,000, which has the potential to deliver game-changing returns over time.

For instance, $7,000 invested in Shopify stock soon after its initial public offering would be worth over $400,000 today.

Valued at a market cap of roughly $225 billion, Shopify is among the largest companies in the world. By comparison, Kraken is a much smaller entity, valued at $2.7 billion.

TFSA millionaires also hold a basket of high-growth individual stocks rather than parking money in low-yield savings products. Research shows TFSA millionaires are more likely to own individual equities and hold them for years rather than trading in and out.

The common thread is patience combined with conviction. Basically, you need to pick quality growth stocks, hold them for the long haul, and let compounding do the heavy lifting.

Why the Canadian stock fits the TFSA millionaire playbook

Kraken Robotics designs and manufactures sonar sensors, synthetic aperture sonar (SAS) systems, pressure-tolerant subsea batteries, and underwater robotic platforms for both defence and commercial clients worldwide.

• In 2025, Kraken reported record revenue of $102 million, up from $91 million in the year-ago period. Its gross profit rose 42% to $63 million, as margins widened from 49% to 62% over the past 12 months.
• Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also grew 21% to $25 million.
• These results were driven by a 30% rise in SeaPower battery sales and roughly 60% growth in both SAS products and the subsea services division.
• Management is guiding for 2026 revenue of $165 million to $175 million. The midpoint represents 65% year-over-year growth. Adjusted EBITDA guidance is $40 million to $50 million, with a midpoint that represents 80% growth.

Geopolitical tension is pushing navies worldwide to invest in mine countermeasures and seabed intelligence.

On the commercial side, offshore energy investment is also picking up, with 42 deepwater final investment decisions expected globally in 2026, rising to about 75 in 2027, per Rystad Energy data.

Based on consensus price targets, the Canadian tech stock trades at a 26% discount as of April 2026. Holding a stock like Kraken inside your TFSA means every dollar of that growth stays in your pocket, which is the kind of compounding engine TFSA millionaires build their accounts around.

The post The Lesser-Known Habits That Most TFSA Millionaires Share appeared first on The Motley Fool Canada.

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Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kraken Robotics and Shopify. The Motley Fool has a disclosure policy.

2026