Canadians are getting rapid relief from the recession through the Canada Emergency Response Benefit. The $2,000 CERB payment will reach most people. You just need to be a resident of Canada, have a social insurance number, have earned more than $5,000 over the past 12 months, and be at least 15 years old.
The stimulus payments are so valuable because many Canadians need the cash lifeline to meet daily expenses like food and shelter. Most of us are using the money to ensure our lives experience as little impact as possible from the coronavirus pandemic.
If you’re fortunate, you may have some of your CERB payment left over. Investing the remaining cash could be one of the best financial decision you ever make.
With the right stocks, you could turn your $2,000 CERB payment into $6,000 or more.
Invest in real estate
Lucky enough to have extra cash? Investing in real estate could be a great choice. As the saying goes, property is the only thing they’re not making more of. Over the decades, long-term investors have made out well by investing in real estate.
But not all property is created equal. To boost your chances of success, make sure to invest your remaining CERB payment in world-class real estate that can never be replicated. That’s what you get with Brookfield Property Partners L.P. (TSX:BPY.UN)(NASDAQ:BPY).
Brookfield is the perfect stock for first-time real estate investors as it gives you instantaneous diversification across property types. Roughly 40% of its portfolio is zoned office, with another 40% zoned retail. The remaining 20% is a collection of more than a dozen classifications.
Brookfield is also diversified across geographies. Its portfolio includes First Canadian Place in Toronto, Brookfield Place in New York City, Potsdamer Platz in Berlin, the Fashion Show complex in Las Vegas, and Canary Wharf in London.
The best part is that Brookfield stock now trades at a 75% discount to its book value. While this bet will take a few years to pay off, it could ultimately triple the value of your CERB payment if conditions normalize.
If you want a more immediate payback, check out the stock below.
Create more CERB payments
Enbridge Inc (TSX:ENB)(NYSE:ENB) is an incredible stock. It’s generated double-digit annual returns for decades. Much of that return has stemmed from dividends. Following the market crash, Enbridge stock now yields 7.5%.
Let’s say that after meeting your basic needs, you have $500 left over from your CERB payment. Investing that into Enbridge stock would result in dividends worth roughly $40 per year. While that’s hardly a groundbreaking sum, it’s certainly a start. Building a passive income stream is always paltry at the beginning, but it’s consistency that matters.
With a $5,000 investment, you’ll be generating $400 per year in passive income. At $50,000, you’ll receive $4,000 annually.
These sums won’t happen overnight. Consistent contributions are key. With your leftover CERB payment, you can get on the path to financial freedom.
Over time, you can slowly add more, moving closer and closer to financial independence. But in order for this to occur, you need to take the first step.
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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Ryan Vanzo has no position in any stocks mentioned.