Thoughts for Difficult Times

COVID-19 & Your Finances
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Economy, Family, Investing, Personal Finance, Politics, Stock Market, Tax

I think that we are all feeling various levels of unease at present; from slightly off kilter to all-out anxiety. Watching the numbers of new infections of COVID-19 every day certainly doesn’t help, nor do the wild swings in markets help calm us. We are living in a world where we are bombarded with daily news and it can be exhausting trying to keep up with it all.

As we talk to many of our clients, we find that everyone’s approach to coping is different. Some people are glued to their TVs and radios, others are choosing to use this time to catch up on house projects, some are keeping regular work schedules at home, and many are pondering their old lives and whether they want them to look the same after this is over. I know for me, outside of working hours keeping a fitness schedule and meditation are key to keeping grounded.

In an effort to filter some of the information that is swirling around us, we are going to highlight a few items we think you should keep in mind. We are also going to provide you with a couple of links to more detailed information that may be helpful to you.

There are a lot of government support programs being offered, that you may or may not be eligible for.

If you’d like even more detailed information, Investia brought in BDO Dunwoody to explain how each of these programs work, so that you can decide if any apply to you. You can listen to the webcast by clicking here.

We have been working hard to keep up with the ever-changing landscape, spending many hours with tax experts, our investment partners/portfolio managers, and even doctors we have access to through our insurance arm, all remotely of course. Here are some random items that came to mind as we participated in many conference calls and webinars on all things COVID-19.

  • We don’t really know how widely this virus has spread already. The death rate seems high now, however in all likelihood once testing is more widespread, the actual rate may be a lot lower.

  • Don’t underestimate or bet against human ingenuity. Very smart people are working on tests, treatments and vaccines for this.

  • We should view this pandemic as a valley. It is a bit of a slog walking down into the valley and back up the other side for sure. If you plan your life and investments with an eye on the far side however, it gives your days hope and purpose. This is an opportunity in so many ways – certainly for long term investors.

  • Never before has having professional money managers looking after your investments been more important. They are working very, very hard. Early on, in February, most sold companies that they know will take a long time to recover, if they do recover. They are replacing them with companies with the strength to prosper, in industries that will be unaffected by this temporary slow down. At low prices too.

  • On a more personal note, keep in mind that the personal support benefits you may receive from the Canadian Emergency Response Benefit (CERB) is taxable income. So, when you file taxes next year, you will need to set aside some money to pay taxes on that income. Eligibility may also be questioned in the coming months, and if you are deemed to not be eligible, you will have to pay back what CERB was paid to you.

  • If you are working from home, you should be able to have your employer complete a T2200 form which allows you to claim certain home expenses. We expect more direction from Canada Revenue on this going forward, but current rules dictate you would be eligible. Check with your accountant or tax preparer for details.

    • We will continue to keep you informed through our blog, and via email and telephone. In the meantime, we hope you are staying safe at home.

    2 thoughts on “Thoughts for Difficult Times”

    1. Thanks once again Kay for an amazing and informative update. You and Amanda always know how to keep us grounded and focused.
      Stay safe.
      Kim

      Reply

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