This is the last month to get your $2,000 Canada Emergency Response Benefit (CERB) before the Canada Revenue Agency (CRA) replaces it with other benefits. Many Canadians took to social media to express their frustration when they didn’t get their CERB last week. But have patience; the CRA is processing the payments with some extra security measures.
Delay in $2,000 CERB
Initially, the CRA would direct deposit your CERB within a day or two of applying. Now, it has added a layer of security after its site was hit by two cyberattacks that compromised data of around 5,500 accounts. The CRA stated that you will receive the deposit within three to five business days and cheque within 10 business days. If you have applied on August 30, you should have got your CERB by the weekend or will be getting it today.
Now, don’t rush to spend the entire $2,000. You don’t know how the CERB alternatives will come. The Canadian finance minister stated that the alternative benefits will be paid in arrears. This means the CRA will credit the amount after the end of the benefit period. So, if you do qualify for the recovery benefits, you may have to wait until the end of October to get the payment.
Stretch your CERB payments for a longer term
It is not a good habit to depend on the CRA benefits for your living expenses. You will be in a fix when these benefits end. Moreover, you also have to arrange for the tax that will be levied on these payments. If you have been setting aside $100 a week from all your CERB payments, you would have at least $2,000 to invest.
Use this money to invest in a growth stock that can thrive in the post-pandemic economy and give you double-digit returns. One such stock is Lightspeed POS (TSX:LSPD).
Lightspeed was the underdog that rose like a phoenix in the lockdown and became the ultimate recovery story of the pandemic. The stock fell 67.5% in March and then recovered between April and August by rising 224%. This V-shaped recovery has left the stock with a 20% upside from the start of the year. It is not just a pandemic glory. The stock rose even before that. The company launched its initial public offering in March 2019, and the stock surged 90% last year.
Lightspeed stock growth is backed by fundamentals. The company’s revenue is growing at an average annual rate of 50%. It’s omnichannel solutions help retailers and restaurants manage multiple retail locations and online stores on one platform. It tweaked it’s brick-and-mortar-store-dependent model to focus on e-commerce and online payment. Now, you can book an appointment at your local barber or beauty shop, schedule a curbside pickup, check your local store’s inventory, and shop and pay all on the Lightspeed platform.
The platform was in demand in the pre-pandemic economy. Now, the above changes have put it back in demand in the post-pandemic economy. If you invested $2,000 in the stock at the start of the year, you would now have $2,300.
The Nasdaq Composite Index is seeing some correction in September, which has pulled down Lightspeed stock by 10% from its 52-week high. This is a good opportunity to buy the stock. The holiday season is strong for Lightspeed as the transaction volume surges. The stock has the potential to rise double digits by the end of the year. It can earn you an extra $300-$400 on your $2,000 CERB. This money can help you buy a nice Christmas gift for your loved ones.
It is better if you invest in Lightspeed through your Tax-Free Savings Account. Then your investment income will be exempt from taxes when you withdraw the money.
Looking for other areas to invest your CERB payments? Try these.
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Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool owns shares of Lightspeed POS Inc.