From the Editor: Putting Your Wealth to Work with Purpose

Often, the second order of business is how you can use your wealth to help family or loved ones during your lifetime, rather than waiting to transfer it through your estate. Put simply, what if you want to start giving some of your money away, whether now or in the future?

The foundation of any gifting strategy starts with understanding your own needs first. You don’t want to give away money you’re going to need for yourself. You can use planning to understand how much of your money you’ll need for current and future expenses, along with a healthy cushion, which can guide you on how much you might be able to give away. The question then becomes whether this amount lines up with your gifting goals. If it doesn’t, some honest reflection and adjustment may be needed.

How you give matters just as much as how much you give. You want your gifts to benefit your loved ones without removing their incentive to build their own financial footing. You could consider making staged or milestone-based gifts: tying them to education, launching a business, or demonstrating responsibility. This tends to be more effective than providing large lump sums without context. Alternatively, recurring modest gifts can offer steady support while preserving independence. Ultimately, gifting is most effective when it is treated as an intentional part of your overall wealth plan, rather than an afterthought.

Above all, communicate your intentions. A gift of money without context can breed confusion, whereas a simple conversation explaining your thinking behind your gifts can help transform wealth into something lasting. If you’re interested in exploring this topic further, you can read my expanded blog, How to Give Generously Without Risking Your Financial Future.

Also in this issue, Eileen Firth pens her first Nexus article directed towards younger investors. She asks a straightforward question: if you had an extra $1,000, what should you do? She then lays out a practical roadmap for anyone just starting out financially who wants to build solid financial habits.

Denys Calvin takes a fresh look at the advantages of the Tax-Free Savings Account (TFSA). He examines whether triggering a taxable capital gain to make your TFSA contribution makes sense, or if you are better off deferring the gain and leaving your investments where they are.

John Stevenson distills some of his 40 years of investing experience in his article The Art of Being Wrong: Investing with Humility. At the start of 2025, economists and investors predicted how the United States tariff regime would impact the economy and inflation, and most were wrong. The lesson, however, is not how to make better short-term predictions, but about how to invest successfully without relying on them.

And finally, to help you stay organized this tax season, our Guide to Nexus Tax Documents provides an overview of the specific tax slips you should expect to receive. This resource ensures you and your tax preparer have everything needed to file with confidence.