All good things must come to an end. It’s as true for benefit payments as it is for friendships, relationships, and health. Therefore, the CRB, which millions of Canadians are looking at as their financial saviour, will also come to an end. The same thing happened with the CERB, but when it ended, there was a continuation in the form of the EI and the CRB. But when the CRB ends, it will end for good.
Right now, the 26 periods of CRB are set to end on September 25, 2021. September 2021 would be the last month you can receive the CRB (if you qualify) unless the CRA extends the date. But the end date won’t matter for most people anyway, because they would have exhausted their 13-week CRB quota well before that.
So, even if the CRB officially ends in September next year, it would end for most people (especially the ones receiving consecutive payments from the beginning, without leaving a period in between) way before that. The government hasn’t shared its plan for what happens if a freelancer or gig-worker can’t get any work and earn an income, even when the 13 periods (26 weeks) are exhausted.
The people in this predicament right now should grow wise, and as soon as they have a stable income, they should start saving and investing.
A telecom stock
Like Canadian banks, there is an oligopoly in the telecom sector as well, and BCE (TSX:BCE)(NYSE:BCE) is one of the three telecom giants that control most of the market. While BCE has lived past its glory days, especially as a growth stock, it’s still a dividend aristocrat. It has been growing its dividends for 11 consecutive years and is currently offering a juicy yield of 5.8%.
The second quarter was especially rough, but the company has stepped things up in the third quarter. If you can buy now, you will be able to lock in an amazing yield, and you will also enjoy quite a discount on the share price since it’s still far below its pre-pandemic valuation.
A venture capital stock
Hamilton Thorne (TSXV:HTL) is a U.S.-based company that focuses on laser products and clinical testing equipment. Its product range includes some of the most cutting-edge image analysis systems, which have applications in both mature medical markets and upcoming markets like stem cells. The stock is relatively overvalued with a very small price tag.
The overvaluation seems justified considering the growth it has shown in the last five years. Its 10-year CAGR of 21.48% is enough to convert your $1,000 investment into about $7,000 in the next 10 years. If stem cell research starts producing promising results, especially in organ transplant (which is something it’s expected to do), the company might grow explosively.
The end date of CRB isn’t the only worth noting thing about this payment. The benefit is also taxable. The 10% tax that the government is withholding at the source is not all there is to it. These limitations and tax implications are two reasons why it’s recommended that you rely more on your own savings and funds and less on government benefits.