Friends & Partners,

Welcome to the first edition of the Burak Wealth Advisors Monthly Newsletter.

For almost three decades, many of you have trusted me and my team to help

guide your families through different market cycles, life events, and financial

decisions. This newsletter is meant to extend those conversations in a simple,

calm, and educational way so you can stay informed without feeling

overwhelmed.

Welcome from Burak Wealth Advisors

As your family wealth advisor, the focus has always been on more than just markets

or headlines; it has been on understanding your goals, your concerns, and the

people who matter most to you. Whether you are retired, building a business, or

supporting multiple generations, our role is to bring clarity, discipline, and

perspective to your financial picture. This monthly newsletter will be one more way

to stay connected, especially during busy periods when it is harder to speak in

person.

Each month you can expect a consistent format: a brief note on what is happening

in Canadian and U.S. markets, a focused planning idea you can act on, and a short

update on the themes guiding how we position portfolios. The goal is not to react to

every market move, but to help you stay anchored to a long-term plan that reflects

your objectives, time horizon, and comfort with risk.

Market perspective and themes for 2026

Given how closely we invest in both Canadian and U.S. markets, this section

provides a measured view on what has recently driven returns and the themes that

are guiding how we position portfolios. The intention is not to predict every

short-term move, but to frame how we are thinking about risks and opportunities on your behalf.

Canadian market snapshot

Over the past year, Canadian equities have been supported by strength in traditional

sectors such as financials, materials, and energy, with more moderate gains in other

areas. These results highlight why diversification across sectors remains important.

Financials and resource-related sectors have been key drivers of Canadian returns,

while more interest-sensitive and consumer-facing areas have lagged at times.

U.S. market snapshot

In the U.S., technology and related areas tied to data, connectivity, and digital

infrastructure have been among the stronger performers, alongside solid

contributions from certain industrial and energy names.

Sector 2025 Return (%)

Technology 25

Communication Services 18

Energy 15

Industrials 12

Health Care 5

Consumer Staples 6

Real Estate 3

Illustrative 2025 sector performance – U.S. (S&P 500)

Our ongoing investment theme: AI, data centres, and robotics in real businesses

One of the key themes we are focused on is the continued integration of artificial

intelligence and advanced computing into the real economy. Rather than

concentrating only on speculative “pure AI” names, we are particularly interested in:

• Companies that build and power data centres and the infrastructure needed to run

AI workloads.

• Established technology and industrial firms that are using AI and automation to

make their businesses more efficient and more profitable.

• Industrial companies investing in robotics and automation on factory floors, in

logistics, and across supply chains to reduce costs, improve quality, and increase

capacity.

The common thread is that these are tried-and-true businesses with real cash flows

that are using AI, data, and robotics as tools to enhance productivity, rather than as

their only reason for existing. Over time, better efficiency can translate into higher

margins, stronger competitive positions, and, ultimately, improved growth potential.

This theme is reflected in how we think about both our technology and industrial

allocations. It also reinforces the importance of diversification: we want exposure to

innovation, but we want that exposure embedded in solid businesses with durable

fundamentals, not just in the latest fad.

Looking ahead through 2026, we expect:

• Continued investment in data centres and cloud infrastructure to support growing

AI workloads.

• Ongoing adoption of robotics and automation by industrial and logistics

companies.

• A focus on quality – balance sheets, cash flows, and management execution – as

the key filters for which companies we own within these themes.

Seeing compounding in action

The chart below illustrates how a TFSA can grow for a young investor who starts

contributing at age 18 and continues until age 58, assuming a 5% annual rate of

return. It compares three simple approaches: contributing the full amount at the

start of each year, at the end of each year, and gradually through monthly

contributions.

This month’s focus: making the most of your TFSA

With the start of a new year, many Canadians now have additional Tax-Free Savings

Account (TFSA) contribution room available, up to the new annual limit of $7,000 for

those who have accumulated sufficient room under Canada Revenue Agency rules.

Contributing early in the year allows any growth or income within the TFSA more

time to compound tax-free, which can have a meaningful impact over the long term,

especially when repeated year after year.

A TFSA is more than just a savings vehicle; it can hold a range of investments such

as cash, GICs, mutual funds, ETFs, and individual securities, and the growth and

withdrawals are generally not taxed. That flexibility can make TFSAs useful at

different life stages – from building a first home down payment, to supplementing

retirement income, to providing a tax-efficient reservoir for unplanned expenses.

Rather than thinking of your TFSA as “extra,” it can be helpful to view it as a core

building block of your overall plan.

One theme that will come up often this year is the value of consistency. Making a

point of filling TFSA room early – whether through a lump sum, a systematic

investment plan, or a combination – is a simple, repeatable habit that can quietly

add up over time. While markets will always move up and down, time in the market

and tax-free compounding are forces that work in your favor when you give them

enough runway.

A call to action: TFSA contributions for 2026

If you have TFSA contribution room available for this year, this is an excellent time to

review how much space you have and how best to use it. Some clients prefer to

contribute the full available amount upfront, while others are more comfortable

with automatic monthly contributions that fit their cash flow; either approach can

work. What matters most is having a plan and sticking to it.

Over the coming weeks, our team can help you:

• Confirm your available TFSA room based on your personal contribution history.

• Decide on an appropriate contribution amount and funding source (for example,

from cash, non-registered investments, or regular savings).

• Align your TFSA investments with your overall asset mix, risk tolerance, and time

horizon, so the account is working in concert with the rest of your portfolio.

If you would like to set up or top up your TFSA for 2026, please reach out to our team

and we will take care of the details with you.

Helping the next generation: TFSAs for Children and Grandchildren

Many of you have asked how best to help children and grandchildren start on the

right financial path. Once a child or grandchild turns 18 and is eligible for TFSA

contribution room under the rules in their province, opening a TFSA in their name

and helping them fund contributions can be a powerful step. Starting early gives

them decades during which their investments can potentially grow on a tax-free

basis and introduces them to disciplined saving and investing habits.

From a family perspective, this is more than just a financial gift; it is an educational

one. Sitting down with a young adult to open their first account, discuss basic

principles like diversification and time horizon, and connect their investments to

meaningful goals can be an important moment in their financial life. Our team is

happy to be part of that conversation – whether that means helping them

understand statements, walking through an online view of their accounts, or

explaining why staying invested through market ups and downs is often rewarded

over time.

We can assist you in:

• Opening TFSAs for eligible children or grandchildren once they turn 18.

• Designing simple, age-appropriate investment approaches that balance growth

potential with their comfort level.

• Coordinating contributions you may wish to provide, while making sure the

Closing thoughts

Thank you, as always, for the trust you place in Burak Wealth Advisors. It is a

privilege to work with you and your families, and that is something never taken for

granted. If you would like to review your TFSA strategy for this year, explore opening

an account for a child or grandchild who has turned 18, or simply revisit your

broader plan in light of the themes ahead in 2026, please contact our team.

Together, the focus will remain on what can be controlled: thoughtful planning,

disciplined implementation, and a clear understanding of the role your wealth plays

in your life and your legacy.