Is your time to receive the Canada Emergency Response Benefit (CERB) almost up? The $500 weekly CERB is suitable for up to 16 weeks only, but yes, it is enjoyable while it lasted. It would be nice to receive the tax-free benefit forever.
Prime Minister Justin Trudeau is lukewarm to the proposal to make CERB permanent. The benefits program is for Canadians with emergency needs and not for people who don’t need it. Thus, the $8,000 is temporary.
A universal basic income is a best-case scenario. However, discussions on the matter will take a long time. Proponents have valid points, so is the government.
Understand the primary purpose of CERB. If you lost your job or working fewer hours due to COVID-19, you qualify to receive $2,000 per month (paid $500 weekly) for up to four months. The support is for the working class and self-employed individuals who are experiencing financial hardships.
Perhaps one danger to making CERB permanent is that it could encourage laziness and over-dependence on federal aid. If you’re seeking financial freedom and financial security, create your avenue to self-sufficiency. Once you have a personal emergency fund, you won’t need to wait for the government or anyone else’s help.
You’ll be in a better position, assuming you are eligible to receive CERB and have money set aside for emergencies at the same time. You can invest the $8,000 crisis money. Likewise, you can spend only a portion and leave some for tax. Or you can offset the CERB tax with investment income.
A promising investment is Jamieson Wellness (TSX:JWEL). Massive growth awaits this $1.3 billion company from Toronto, Canada. It develops, manufactures, and sells natural health products in the home country and internationally. The business should surge in the near term and beyond as people become more health-conscious.
Jamieson is one of the better-performing stocks amid the 2020 emergency health crisis. The stock is besting the TSX. As of this writing, the price is $33.21 per share. The year-to-date gain is almost 30%, whereas the full-year gain in 2019 was 22.8%.
Aside from capital appreciation, this health stock pays a modest 1.88% dividend. Your $8,000 will generate $150.40 in passive income. The yield may be small, but your money is not at risk.
During the first quarter of 2020 (quarter ended March 31, 2020), Jamieson reported impressive financial results. Total revenue climbed to $84.5 million or a 16.5% improvement versus the same period in 2019. The revenue from the Jamieson Brands alone grew by 24.5%. Net income increased by 48% to $8 million.
According to Mark Hornick, Jamieson’s President and CEO, consumer purchases were brisk throughout the quarter. Health and wellness were top-of-mind of people in Canada and abroad.
The business outlook for Jamieson has never been better. COVID-19 is accelerating the demand for immunity and general health supplements. Management expects revenue in fiscal 2002 to range between 5.5% and 9%.
Crisis without CERB
Saving and investing are very important. You’ll never know when a disaster will hit again. How will you cope with the financial hardship if there was no CERB?
One little-known Canadian IPO has doubled in value in a matter of months, and renowned Canadian stock picker Iain Butler sees a potential millionaire-maker in waiting...
Because he thinks this fast-growing company looks a lot like Shopify, a stock Iain officially recommended 3 years ago - before it skyrocketed by 1,211%!
Iain and his team just published a detailed report on this tiny TSX stock. Find out how you can access the NEXT Shopify today!
Fool contributor Christopher Liew has no position in any of the stocks mentioned.