Author Topic: Any Canadian gov't benefits for retirees due to virus?  (Read 1023 times)

Seadog

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Any Canadian gov't benefits for retirees due to virus?
« on: April 09, 2020, 06:54:01 PM »
I was hoping someone here might provide some clarity, but given how much many retirees (early or otherwise) portfolios have crashed does the Canadian governments current programs offer and sort of assistance? I'm semi-FIREd, but having seen my portfolio lose like 40%, largely as a result of many policies of the gov't shuttering the economy, makes me extremely hesitant to start selling as per normal. They say you need to have $5k income (which I do from dividends and cap gains) to qualify for the 2k/mth CERB but haven't found any concrete answer as to if that qualifies. Similarly I can't even really get a job until my quarantine ends which is on the table, along side just reducing spending. Now, I know the 4% rule dictates just go on per normal, but when you've literally seen cash equal to the value of a home evaporate, it's easier said than done. My fully retired parents are in the similar boat, and not going to return to work any time soon, but are also struggling with the huge losses of the money they were counting on. Fortunately at least they were more conservative because of their age, so they're in slightly better shape,

I sort of feel like the gov't policies led to both people being unemployed along side crashing stock values. To me (maybe with a slight conflict of interest) it seems like two sides of the same coin. Many people equally rely on stocks for income just as much as a typical job.

Lews Therin

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Re: Any Canadian gov't benefits for retirees due to virus?
« Reply #1 on: April 09, 2020, 08:00:54 PM »
This is when the bond portion is useful.

Or CD's

Or Cash.


Nothing yet for people who had no jobs, and now can't get one.

Missy B

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Re: Any Canadian gov't benefits for retirees due to virus?
« Reply #2 on: April 10, 2020, 11:26:12 PM »
I was hoping someone here might provide some clarity, but given how much many retirees (early or otherwise) portfolios have crashed does the Canadian governments current programs offer and sort of assistance? I'm semi-FIREd, but having seen my portfolio lose like 40%, largely as a result of many policies of the gov't shuttering the economy, makes me extremely hesitant to start selling as per normal. They say you need to have $5k income (which I do from dividends and cap gains) to qualify for the 2k/mth CERB but haven't found any concrete answer as to if that qualifies. Similarly I can't even really get a job until my quarantine ends which is on the table, along side just reducing spending. Now, I know the 4% rule dictates just go on per normal, but when you've literally seen cash equal to the value of a home evaporate, it's easier said than done. My fully retired parents are in the similar boat, and not going to return to work any time soon, but are also struggling with the huge losses of the money they were counting on. Fortunately at least they were more conservative because of their age, so they're in slightly better shape,

I sort of feel like the gov't policies led to both people being unemployed along side crashing stock values. To me (maybe with a slight conflict of interest) it seems like two sides of the same coin. Many people equally rely on stocks for income just as much as a typical job.

Capital gains and eligible dividends do not qualify as CERB income. Ineligible dividends and self-employment income do count. I think the govt increased the amounts for people who are getting GIS/OAS temporarily (didn't pay much attention since I don't get that.)


BPA

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Re: Any Canadian gov't benefits for retirees due to virus?
« Reply #3 on: April 15, 2020, 12:31:26 PM »
If you are semi-FIRE shouldn't you have $5k a year in employment income? I'm not sure what your definition of semi-FIRE is.

I have a very part-time job and have qualified for CERB as a result.

The only thing I've seen for retirees is that there is a reduction in the amount someone would need to take out of RRSPs at 71.

You may want to revisit your asset allocation in the future. Losing 40% of your portfolio seems high considering that today the TSX is down about 22% of its peak. It amazes me that many people fail to grasp that the flipside of reward in the stock market is risk, but I guess that's the effect of a long bull market.

Frankly, I'm glad that the Canadian government isn't bailing out people who should have had a better grip on their risk tolerance. Also, I am glad that they are prioritizing lives even though it means that my portfolio is down almost 10% as of today. I totally agreed with Trudeau's stance that he was most concerned with people being able to feed their families and pay their rent.

My advice would be to live frugally and take little out of your investments until the market recovers and be sure to reevaluate your risk tolerance. Good luck.

Sun Hat

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Re: Any Canadian gov't benefits for retirees due to virus?
« Reply #4 on: May 04, 2020, 10:45:21 AM »
If your parents are eligible for old age security, they should still be eligible for the guaranteed income supplement if their income falls below the threshold for their situation: https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security/payments.html

You object to the government taking action to protect Canadians but want you want Canadian tax dollars to bail you out for failing to diversify your investments? Poor form. 

Seadog

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Re: Any Canadian gov't benefits for retirees due to virus?
« Reply #5 on: May 04, 2020, 11:44:08 AM »
Semi retired in the sense that I work ft for a while when I get bored, then took over a year and counting now off to do big trips. I was actually in the midst of a big trip which I had to cut short when this hit, under the plan of finding something new when I came home, vs part time work which is part of your day to day life.

Most of my money is in the US markets, so peak to trough was like -35%. Anyways it's since recovered a fair bit. I have cash and dividends which will sustain me for the medium term, however dividends have become a giant question mark as many companies are reducing or suspending.

My point was that many people will literally be better off financially when this is over, and then many others (like small business owners) will literally see everything they've worked their life for disappear. My situation isn't anywhere's close to the worst, and was lamenting the fairness of it. Not being as diversified as I probably should be is hardly a crime, but spending 110% of your income on crap and now getting into financial straights due to poor planning is apparently being rewarded with free money. I don't see why my coulda woulda shoulda is different than a coulda woulda shoulda of someone who blew through every cent they've ever made.
« Last Edit: May 04, 2020, 12:37:58 PM by Seadog »