InvestmentVideo

New Tax Rules And Benefits For Canadians

By April 2, 2020 May 1st, 2020 No Comments
All views expressed in this video are provided for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities. The statements expressed herein are not intended to provide tax, legal or financial advice, and under no circumstances should be construed as a solicitation to act as a securities broker or dealer in any jurisdiction. All views are intended for general circulation only and do not have any regard to the specific investment objectives, financial situation or general needs of any particular person, organization or institution. Please do not hesitate to contact us should you want to know more about the information contained in this video or have any related questions.
CANACCORD GENUITY WEALTH MANAGEMENT IN CANADA IS A DIVISION OF CANACCORD GENUITY CORP. MEMBER – CANADIAN INVESTOR PROTECTION FUND AND THE INVESTMENT INDUSTRY REGULATORY ORGANIZATION OF CANADA.
Investing in securities conveys different types of risk, including the loss of principal.
The views expressed in this commentary are the views of Rob Tetrault and are subject to change based on market and other conditions.
Please consult with a tax specialist for further information and to help you determine if these strategies are suitable for you.

There has been a lot of news and updates in regards to tax deadlines & Canada’s economic response plan to the Covid-19 outbreak.

This video was recorded LIVE on Thursday April 2nd 2020 with a guest.

Julien Grenier is a CPA & CGA from Talbot & Associates and joined us on the LIVE show. He was able to shed some light and navigate through the latest news on tax deadlines, Canada’s Emergency Response Benefit, wage subsidy for employers and employment insurance.

If you missed the LIVE last Monday March 30th 2020  on Financial Planning During The Stock Market Downturn, click HERE to watch it.

Transcript

Rob:

Okay. Facebook. YouTube. Here we go. All right, let’s get going. Thank you. All of you guys for joining us. I’m Rob Tetrault from robtetrault.com I’m head of the tetrault wealth advisor group here at Ken accord Genuity wealth management.  it’s been a really Rocky and fun time.  when we’re doing these lives. It’s not been a rock and fun time in the investment world or out in there in the real world out there today. I’m thrilled to have as a guest.  did you can’t get any how, it seems yet. I haven’t seen you in a bit, but good to see you here. She game is a partner and a, give me your title again. G Ganz, good title.

Julien:

A prominent  and the agriculture manager here, here as well.

Rob:

Okay. Thanks for joining us again. So start thinking of your questions folks.  today we’re asking you guys about, we’re going to be talking about specifically like you have an accountant here. This guy is, I don’t know, six, $800,000 an hour account. I dunno. He’s, he’s a big shot. I don’t know. He’s, he’s, his time is valuable. We’re thrilled to have him on the show. Think of the questions you want to ask him. Sometimes it’s tough to reach your account. You have one here. So think of the questions you want to ask him and feel free to put them in the chats and either Facebook,  or, or a YouTube. So JDA,  I’m gonna, I’m gonna maybe, maybe before we get into Kennedy accounting stuff. What a crazy week in the markets, right?

Julien:

I sympathize with your, your phone must be ringing off the hook with people just, you know, nervous about their investments and all that kind of stuff.

Rob:

You know what, for us, the call volume is really not that,  not that intense. We’re, I mean, people, I’m sure people are worried. I’m sure they are. We’re doing our absolute best to be extremely,  connected with our clients. We’re trying different ways this time. Then in, you know, 2015 and 2011 and 2008,  we’re doing a ton of communication directly from me through either YouTube or Facebook, these video things. We’re doing a lot of emails. We’re doing a lot of one off emails with people to let them know what’s happening in their portfolio. We’re doing a lot of planning, so,  Adam has been reaching out to people as well. So the, the communication I think has been extremely strong. So I guess because of that we’re getting less,  less inbound calls. And also I think,  I don’t know if it’s a good word to say that our, our clients are,  I mean we’ve been practicing defensive investments for a while as you’re getting, as you, you know, so we’ve, our clients are, are, I guess they consider them themselves relatively lucky because I saw an article last week that the balanced portfolios for the first time, for the fourth time ever, fourth time ever a balanced portfolio, 60% equities, 40% fixed income,  is down is down 20%, 20%.

Rob

And that’s only the fourth time ever that happens. So,  we’re definitely to knock down 20%. Yeah, it’s crazy how well you guys are doing, how busy it in your world.

Julien:

Yeah. So there’s definitely a lot more inbound calls based on, on all these new changes, all these different announcements. And like you said, everyone, everyone has access to, to media these days, right? And so information is being trickled down to the end consumer,  before, you know, all the facts are, are, are, are concretized so, so yeah, there’s a lot of, there’s a lot of panics, a lot of people worried about,  about whether they have ESPN employees and, and what they’re going to do to make sure that they can continue to put food on the table for their kids. Right. And so we’re doing everything we can to stay on top of all these new changes and these, these,  these updates here so that we’re just continuing on and,  doing that information right back to people, which is awesome. You did this Facebook live idea. This is phenomenal to get good information from, from advisors like yourself to, to people who really need really good advice. So to see you guys is great.

Rob:

All right, well let’s start right off the bat. Today I’m going to, I’m going to hit us with some questions. Okay.  let’s start with tax filing, all that stuff that’s mostly semantics. So if you could start with what’s been delayed, what do you need to actually file, if you’d mind starting there?

Julien:

Yeah, it’s a great question, but I think to really put an emphasis on, on, on certain points here is what is not delayed expressing, not delayed. Okay. So payroll, remittances and need to be filed on time still. Okay.  these are crucial because that’s, that’s one of the most important pieces that the government’s gonna use to determine if your employees and things like that are eligible for, for, for Cru, bed benefits or anything like that. Right. So you got to get to, is filed on time. Okay. The other thing, it’s not as popular for most every day person, but the E D credit, so did his friends, he said they’re not gonna extend deadlines for that one.  so that’s basically if people are doing some scientific research or experimental development, some very big credits for people doing some really good things for our country. But no deadline extension. It’s for that either. Okay.  now as it relates to your individuals extended that filing deadline until June 1st okay. Normally that’d be April 30th. They’re now going into June 1st for filing.  and then they’re extending the payment that’s normally also due April 30th to September 1st.

Rob:

Okay. So for, for guys like me who don’t file their taxes until June 30th anyways, it’s perfect.

Julien:

Well, I think, yeah, you’re, you’re a Soper pirate or proprietors I think officially, right? So those guys are a little bit different.  they have til June 16th normally, so that remains unchanged. Okay. But you do get to have an extended payment deadline until September 1st. Okay. Normally insurance would start applying right as of April 30th for a sole proprietor for yourself, but they are not charging any interest or penalties. Okay. So that’s a little bit different this time around as well.  okay. I guess we might as well go to some corporate deadlines. Me take me through the corporate

Rob:

deadlines. Take me through the corporate deadlines, how that works, whether you know what, what my year end is, when I can delayed when I can’t.

Julien:

Sure, sure. Yeah, absolutely. I’d be glad to. Yeah, so corporations, if you have a deadline, so most corporations have a six month filing deadline for filing deadline. Okay. So if you have a deadline that’s ending at any point after March 18th, your deadline is automatically extended until September 1st okay.  so that includes payment of Andy interest on amount that came due after March 18th. Okay. So you gotta be careful with it. Penalties and interests. So penalties is something that would apply immediately if you don’t file on time. Interest is something that starts to accumulate if you haven’t paid your balance due by a certain date. Okay. And those can be different. So for, let’s see, an example, a September year end, nor would the payment deadline would be December. Now if you do pay your taxes on time at December, interest would accrue up until March 18th at which point you will have some relief.

Julien:

Okay. Now if your payment deadline is December,  sorry, it March 31st because of a December year end rate, those those payments are again deferred until September 1st.  and, and no interest or penalties that apply on those balances as for GST and PST and those kind of roll into two businesses as well. So for your juicy filings, we haven’t expressed, he said if they’re extending the deadline to file okay. But they haven’t said,  that they will apply penalties and interest if your deadline is February 29th or later. Okay.  so what that means is that the, obviously they won’t charge the penalties or interest. However, there are some things for the benefits that some companies get or some businesses get for having a perfect compliance history. Okay. So if you’re late filing your GST, that would break your perfect compliance history.  and so they haven’t expressed, he said if they’re going to continue that type of a, like if they’re going to enforce, if you miss a deadline or or what have you, but they really need to know these things, right?

Julien:

They need to know how much sales these companies are reporting so that they’re able to administer the benefits properly. So I think that’s why been a little bit, as it’s in on saying outright, don’t worry about filing for these things because they still need to have that data about businesses because if they don’t have it, they’re dead in the water. So for PUC real quickly, as long as your monthly amount only for PST is less than $10,000 your deadline will also be extended until June 22nd that is payment and I believe filing as well. Okay. Okay. All right. So

Rob:

on that point, one of the questions I’ve been getting the most on a similar point, one of the questions I’ve been getting almost in, you’re probably getting inundated with this is the wage subsidy for employers. So you know, the common, you know what I’ve heard and what you know we’re seeing in the news is that the first 75%,  is a subsidy for employers provided. You can show that, you know, 30% loss of, of revenue. Now I heard them talk about non-for-profits I run it on for profit. So I kind of curious about that. What about startups? How do I have so many questions about that one? What do you know about it? And have they even hammered out the details yet for that?

Julien:

Yeah. Yeah, and that’s a great question. And by far, the number one most popular question this week is, do I qualify for this wage subsidy program? And,  and you want to, unfortunately, they don’t have all the details out right now.  but what I can tell you is that yes, so if you’ve experienced a reduction in sales volume of 30%, and what they’ve said by that is this, let’s say your March, you had a $100,000 of sales last year. While if you have $70,000 or less in this current year, you would qualify for this wage subsidy. Okay? So on the surface it seems relatively easy enough, right?  and then the max benefit is limited to the max EEI covered benefits that people have. So roughly 57,000 or translates to about $847 per week. So if you have someone who’s earning that type of those dollars, they’re going to be covering your employees up to 75% of what you paid them. Okay. Now this is a benefit for people. Yeah. Go ahead Rob.

Rob:

Well, so just to be clear, that’s a subsidy to the employer. That doesn’t go directly to the employee from the government. So, you know, in my case, or your case, that would go to us to help us pay our staff. And I guess they’re hoping that we’ll top up the 25% and we’re not going to lay anyone off. Right. That’s the idea.

Speaker 3:

 

Julien:

yeah. For me, for what I can get on the train to restrict the amount of people going onto the AI. Right? So the one, two people who are the people who can work and earn something, they want to limit as much of that government spending as possible. So, if there’s work to do and people are at work,  the miners will do as much as they possibly can to keep the economy still going.  so even if they don’t hire fully working full time or, or, right. So it’s, it’s an incentive for people to keep them on a, so even if they don’t have the full hours, will they still get paid up to saying if I first set up their regular,  hours, right. So,  yeah, so it doesn’t matter to try and stop people from going on EEI cam. So the, we’ve subsidy the big questions that I’m getting are for people who may,  maybe owner-operators or me, maybe shareholders with their own businesses or non arms length or, or I should say not related to someone who are related to someone who runs a business.

Julien:

So obviously in our, in our practice, we’re a lot of questions related to that because what a lot of our clients make up that time type of demographic, right? So,  unfortunately for them, and there are some, some holes in this way, subsidy program. We are working with CPA and then and in constant communication with our ministers and things like that to get the most up to date information as quickly as we possibly can.  but I think that’s the thing is that the government is trying their best to give him money to these people, these businesses and you know, it’s kind of one of those things that they want to give the money out but they don’t want to see abuse and they’ve been very clear about that. Right. They don’t want people, like you said, it’s a subsidy going to write directly to the employers and so they’re, they’re trusting business owners to make sure they’re doing the right thing and making sure that they’re trying to get their staff and keeping them employed.

Rob:

I would imagine that you gained that. This’ll be one of those situations and I don’t know, but that there, cause this has never happened in Canada, we’ve never sent checks directly to employers as a subsidy like this. I would imagine it would be a situation where listen, kind of honor system to start maybe. But however, once this kind of blows over, if we found out that you were unethical and you took it, then I would imagine the fines are going to be heavy and it’s going to be penalty plus plus pull everything back et cetera. Right?

Julien:

Yeah. I haven’t announced specifically what kind of penalty managers are going to be in place. Right. But they didn’t want people achieving a session. And so,  but with this uncertainty, people still don’t know exactly what to put on the application. Luckily the application product, the application is not going to be out for a little bit yet. So they have some time to clarify what the mean.  so, so I, we still have some time to figure that out, but like I said, as soon as we get some more information, right. Sign up for our newsletter and you’ll be the first to know as soon as we got the information.

Rob:

Yeah. Good. Good point. And you know, we were talking about this last week, you and I, as you gain, we’re like, Oh, by next week we’re going to have a ton of clarity on this. And here we are. Thursday. We still don’t have the clarity on this. I mean, I’ll say this from a market perspective, you know, I’m, I’m somewhat thankful that we’re seeing this because you know, what would’ve happened had there been no subsidy announced that there’d been no quantitative easing? Had there been no any stimulus of any kind on behalf of the government? Well, I think we would have gone into a full blown, nevermind a recession, like a full blown depression. Right. So, you know, I’m kinda glad to see it. You know, the, the level of stimulus that they announced that’s good for the market. I think it likely saved the stock market from dropping further. Now I just hope they could figure out implementation, getting the checks into the people’s hands and making sure that the check is in the right hands. Right.

Julien:

Yeah, I have a lot of people were involved. The timing of the thing. Right. So, so the measures that we’re recommending to clients right out the Gates is essentially, you know, the, the announced that $40,000,  business program loan is a 0% interest loan. Where as long as repeat before December, 2022, you’ll get up to $10,000 of that amount back. So get that $40,000 interest free loans set up, talk to your bank. I know it’s still working with final kinks out, but any day now that should become available,  get that loan to cover you for these next little while and then understand the $40,000 per some businesses is not enough. Right. And that’s where BDC,  backed by the Kenyan government would, would help big time. We have some work with capital loans and I can just, I, I’m sure that they’re working around the clock to make sure that this capital is given out to people to pay their staff and all this kind of stuff. So, so my best recommendation for business owners who are waiting for this wage subsidy, you are depending on this week subsidy to kick in to pay their workers. The best you can do is get this temporary financing.

Rob:

Okay. Is your name, we’re getting a lot of questions on YouTube and Facebook. I’m going to, I’m just going to rapid fire a couple of, one of them’s here from James. He was under the impression that the subsidy was actually applied against remittances, not actual funds to employers. Have you heard about that one?

Julien:

So yeah, so that’s just an unworldly. So the initial subsidy was the 10% wage subsidy. Okay. So there’s now two coming into place. So that 10% wage subsidy,  was, yeah, it deducted from, from what employers had to remit to,  to CRA on, on a monthly basis when they remitted the resource deductions case. So, so those taxes that come off your check, well, your employer was getting a discount on that.  that started a few weeks back. Okay. So now with the same five rates present subsidy, you can imagine that while there’s not enough deductions to cover say 5% right. So the exact details on how that money’s going to come out is still not perfectly clear, but I don’t imagine it has to be some sort of kickback to that employer.

Rob:

They can’t if there’s no, if there’s nothing to offset it against, they can’t just offset it. It’s nothing, right? Like 75% of your mind.

Julien:

So I didn’t imagine that it would be kind of a system where it’s like, okay, well you first reduce your deductions to zero and then you apply for the separate amount, that kind of thing. But Gretchen, I don’t know if there’s other things about that, but the 10% wage subsidy is still in effect for people who don’t qualify for the site. 5% of wage subsidy, they’ll still be qualified for that 10% one.

Rob:

Okay, that’s good. Hey, another couple of questions here for those that need to be Sandy, thanks for the question. For those that need to be laid off, doesn’t, does an Roe, a record of employment have to be completed.

Julien:

they’re, they’re, they’re,  kind of the, the waiting period for, for those ROIs. So you can directly apply without one.  now if you are getting laid off, you should still be submitting an ROV for those individuals, okay. As an employer. But as an employee, you right. As soon you no longer are an employee, you should be able to fast track to get some benefits. Now that’s another point that kind of changed a little bit.  over the course of the Reese is that the, they had the initial emergency response benefit,  with, with some EEI wasn’t treating to the eye. That’s pretty much completely been replaced with the CRB K,  the candidate emergency response benefits. So if you are no known rehab work,  the CRB is going to give you 500 bucks a week,  as long as you qualify for that CRP. Kay. So to qualify, you need to no longer be working okay because of covert 19 or something related.  and, and you must have met at least earn $5,000 of encounter in the past year, basically, or in 2019 altogether.

Rob:

Okay. It’s relatively straight forward in that sense. Okay. Here’s another question. This one’s directly from me real quick. And Amy, your favorite investment or accounting movie ever?

Julien:

Well, I mean, you have to be Amazon. I’m a big fan of willful wall street.  you know, DiCaprio. He, he’s  he should have won. He shouldn’t have won an Oscar for the beach or something like that. Right. But,  you know, I, I loved the Wolf of wall street and I really enjoyed it for sure.

Rob:

I want a double martini and I want another one every five minutes until I’m drunk or something like that. It’s, it’s funny. It’s funny.  okay. Now next question here.  question about, by the way, feel free to tell me your favorite investment slash is there, are there any accounting movies? Is that a thing? Is that a theme? Which one?

Julien:

There’s the accountant

Rob:

who, who watched that? The account.

Julien:

We,  we did a whole a field trip with our office to go see the, it was actually, it’s actually better than expected movie athletics.

Rob

Okay, fair enough. So if you have ideas, please put them on. We’d love to hear your favorites.  if an employee question from a M if an employer has to step into business operations and do the work of laid off employees, do you think they could pay themselves a wage and receive the subsidy?

Julien:

Yeah. So that, that, that’s one of the things where it’s really difficult, right? Where our kind of alluded a little bit, people who are related to the business owners, so you and yourself that you’re related to your own business owner.  their benefits is unfortunately restricted at the moment to what they’ve paid themselves,  prior to pre-crisis is what they’re, they’re talking about. Okay. So,  you can’t just necessarily change your compensation method or decide to start paying yourself a wage just to get this benefit.  now like a lot of questions like that are coming up, right? What if this happens? Whatever that happens, what if I have to fill in for somebody else? And that’s where really hoping that, that we can continue sort of continuous conversations with CPA and our ministers to really get this thing right. Right. Because,  it really would be unfair to do everything you possibly can to save your business,  and not get the subsidy even though you’re someone who should get it. You know what I mean? Based on the, the feeling or the, the nature of, of what this benefits intended for.

Rob:

A question about,  I asked you earlier about this, either a non for profits which have either very little revenue or not a ton of revenue and or startups which did not have revenue a year ago today. Have you heard of anything with respect to them? I understood the process to be kind of an exception application process where there would be some sort of form or, or area where, you know, I could apply as the Canadian CMV foundation nor revenues are down because we weren’t able to host some fundraisers. We weren’t able to, you know, no one’s donating because you know, money’s tight. As a result of that, we’d like our employees subsidized. You see that process happening where it’s like a, an application process through a website or a portal?

Julien:

Yeah, for sure.  sending me to have an application portal. Okay. We haven’t seen details on that portal. What’s going to look like specifically to charities and things like that. Where are sales isn’t their main metric, right? They’re going to have to announce some sort of different thing other than sales. I can’t imagine,  we haven’t gone out completely said anything specific from, from what I’ve been able to see. But yeah, a perfect example, like another perfect example of someone who is may not be covered based on the rules as we see today is someone who has expanded their business. Maybe they had five employees last year and they ramped up operations and now they’re a company that has 20 employees. Great. Even if they’re, they dropped 30% in their, their sales compared to wages, they would technically not qualify as we are seeing it today. So,  we should get more details on Friday, which is tomorrow. At this point. It’s hard to decide to remember what day is when you’re working on the base,

Rob:

especially when you’re coming to the office every single day, seven days a week, morning tonight, and all the days look the exact same because by the time you get home, it’s easy for the kids to bed and check your emails and go back to bed and then come back and repeat.

Julien:

No sayin it’s, it’s, yes, there isn’t. So tomorrow, tomorrow we’d have, we’ll be, we’ll be hopefully hearing a little bit more.  and like we said, there’s a lot of uncertainty around this wage subsidy.  and it’s very confusing and it’s very,  muddy and, and, but day after today, we’re gonna dissect more, we get a little bit more information,  and hopefully see, see some clarity in the next couple of days on this wage subsidy specifically, at least, at least the CRB sounds like it’s, it’s pretty much fleshed out and it’s ready to go. April 6th is the devil is the, the, that you can start applying and individual.  so if you’ve been out of work for, for a sentence, March 15th, no, back dated.  but basically it’s based on a date in the monthly reporting. So April six, I think January to March, babies get to apply. April 7th,  April to whatever. So there’s a, there’s a breakdown. I don’t memorize it but, but that’s the kind of thing. So they’re going to stagger things to hopefully not overload their servers all on day one. So. So January Mark DBZ you guys are lucky you guys can apply on April 6th.

Rob:

Okay. A couple of feedback with respect to movies. Apparently at AAN actually watched the accountant. She was one of the seven people that watched it when it came out. I’ve never heard of it. I’m sure it’s a good movie. I haven’t heard anyone else feedback with respect to that. That movie Derek tells us that the best accounting movie ever is the Shawshank redemption. Andy Bernard.  what, what’s that today?

Julien:

No, just, just say, well the  technically that an accounting movie I suppose. Yeah, but the

Rob:

like what a great flag.  questions coming in on my phone, my business Facebook, which it’s not coming in through mine mocks. So,  please just wire it to my earmarks and I will ask it. I’ll ask if there’s UTA. Otherwise, I’m going to keep going with some questions we got online here. By the way, guys, don’t forget, I’m also here that and I will give you a quick review of the markets would happen at some point.  but I, I do want to give you again some time here, a question from Brenda to small businesses. Sorry,

Julien:

I did have a question for you if you had some time here.  right, so, so we’re, we’re hearing a lot about these,  the, the mandatory riff withdrawals being relaxed,  and, and a lot of clients asking kind of, well, if I’m forced to withdraw some cash, what are the strategies you guys are implementing? What do you recommend on that kind of thing?  so you have clarity on that and then a followup recommendation for those people. Well,

Rob:

yeah, so there’s a difference between withdrawing and actually selling investments, right? Because you can withdraw investments in kind. So let’s say you do not need that Tash flow, so the minimum rift withdrawals. Some people need the cash flow, they need it every month. They need to put food on the table, pay the mortgage, or pay the condo fees. Other people don’t. They have enough assets that it’s merely a tax attacks drawdown for the government. So if they are drawing that money down and they do not need it for cashflow, I would strongly advise the obvious place would be to move it to a T FSA in kind, like you don’t want to be selling a Royal bank stock or, sorry, I’m not mentioning specific stocks here. Today’s your day, but you don’t want to sell a stock that is down quite a bit. That’s high quality. You want to move those in kind.

Rob:

Now, if if you don’t have room in your TFSC and you, you’re maxed out in your TFA and you deploy it a ref and you don’t need the taxable income, that will go to a non-registered account. If you’re married, likely a joint non-registered account and in that account you should definitely focus on tax efficient investing. So take a look at anything that pays a return of capital that is not classified as taxable income in the year you receive it. You know, Canadian eligible dividends, a preferred share dividends, those are beat up quite a bit right now. Those might be attractive. All of those are paying you efficient tax efficient income in your non-registered accounts so you don’t have to declare that income as high on your teeth, on your, on your, in your teeth, reason your tea pies at the end of the year. So that’s what I would do for that. Yes, we’re on the same page.  did you have a follow up? Otherwise I’ll go to a few more questions online here. A question from Brenda. If you own a small business and it has to close, what happens with PST and GST payments, I think you’ve covered this early on, but do you mind just touching on it again?

Julien:

Yeah.  do team deadlines are extended, right? So said that they’re not payable at this point, they’re just extended. So, so,  so yeah, like if you addition, like if you’re close and had a bankruptcy, that’s a whole different story.  but right now it’s deferred deadlines,  and, and, and no penalties, no interest on, on late payments.  PT, June 22nd GST.  September 1st, I believe. Yeah.

Rob:

Take a question from  or Reggie. By the way, for those of you who didn’t know GA is a Francophone

Julien:

 

Rob:

no, no, no.  we’re doing it in English today, but Asia owns a corporation and he pays himself a salary. I think you touched on this earlier when I’m gonna ask anyways, the income in the business is going down more than 30%. So he would qualify. Can the owner apply for the 75% subsidy on his own salary?

Julien

So, so from what I understand, that should be okay. As long as he’s, cause they’re limited to the pre-crisis income

Rob:

prior history. Prior history needs to be there, right? Yeah. Okay. Yeah.  suggestions. A question from Mike suggestions. If an employer is not interested in doing the 75% wage subsidy, that’s a tough one because what do you, yeah,

Julien:

I mean like it was any with any government grant or subsidy program,  if you’re not interested in getting the income, you don’t have to apply. That’s business as usual. I mean, I encourage everyone who’s, who’s a eligible to apply to apply. It’s not every day that government hands out checks. So,  right. It’s again, like it’s not there to abuse the system, but if you qualify, it’s likely because your business,  is the one that, that, that means the, the support. Right. So I’d say if you’re, if you’re in a business that doesn’t need the subsidy, take the subsidy and pay it forward. Right.  donate to a charity you donate it to or give it to other companies in need or something. Right.  do you really intend to help out those in the most need? Right, the altruist, yeah. Yeah. It’s pretty much a, it’s, it’s, it’s,  follows me every

Rob:

good for you. I believe the same thing. Obviously I’m a big believer in philanthropy and giving back.  as you know, for sure. Let’s talk about a question I got online here from,  bill.  if you’re employed, if you get, sorry, I’ll read it. If your employer doesn’t qualify you sugar, should you remind the employer that if someone’s laid off and they don’t quite lose all their hours, so if someone’s laid off from full time to part time, what happens is the subsidy, what happens to the EEI benefits? How does it work for the actual recipient who’s laid off?

Julien:

So, so technically speaking, if you’re a full time employee for example, and your employer tells you, Hey, you know what, like I’ve got to drop you down to part time because,  we don’t have the hours for you or they’re just not the work. Right.  they’re tend to supposed to give you an honor. We at that point, even in normal circumstances, okay. So this is something that is eligible for people where they can be both on EEI and being paid by by their employers. So if you don’t qualify for the CEO of the, because you’re still technically working and your employer doesn’t qualify for,  the way you subsidies, so we can’t afford to talk you up, you can request that. You can remind your employer to kind of say, Hey, you know what, like you should,  you should be partially laid me off so I can partially get EEI. So that is a,  something that is, that is available to two people. So we do have a little bit of a flow chart,  on our website and things like that. But if things are not clear and you think you, you might want to lay off half your staff or part time or something that you don’t qualify,  yeah, you send me a message or, or give me a call and I will,  I will get you the information you need for sure.

Rob:

Yeah. And, and for, for both the old clients of the teacher group and clients of the Talbert group. I think if you’re not getting these wonderful emails from Talbot, my clients that are watching, if you want to be added to this, send me a note. We’ll get you added. They send out some quality content.  does your gang, have some of your clients want to get some content about investing? What we’re doing right now in the market, how we’re protecting capital, what we’ve done, just so you know, yesterday we put about a thousand trades in for our client’s accounts. We were extremely busy yesterday. We had kind of accumulated some cash positions over the last several months for our clients. And yesterday we put some of that cash back to work for our clients.  because, you know, quick tangent, here’s a game, but I looked at the 2000. I’ve done a lot of revisionist thinking here in the last couple of weeks and I, I, I’ve taken a look at a lot of videos from February and March, 2009 when it was the end of the world and nobody was buying stock.

Rob:

Like truly nobody was buying stock. And I took a look at the numbers that advisors have done. Guys like me, professionals that are supposed to be advising clients, well not only did they completely screw up the trade in 2008 2009 they actually ended up being late on the upswing for the client. So they were overexposed to stocks when the market peaked, they only had 23% Tash, which was the cash or fixed income, which is the lowest kind of ever. And obviously they sold everything at the bottom. Advisors, professionals, professionals like me. So I am like, we’re not going to screw up that trade. I talked about this on Monday. Again, I’m talking about it again. You are paying your advisors for quality advice. You are paying them to go to work. You’re paying them to talk to their experts. I had a call this morning with my tango beverage, by the way, he’s going to be on next week.

Rob:

He’s our chief North American macroeconomist. He’s unbelievable. The guy is, I’ll have to ask him to tone it down for this show because he’s, he’s a million miles an hour and he’s too much. But regardless, we’re supposed to do that, right? Janae, like that’s my job is to talk to these people and then to make the tough decisions nobody wants to buy right now. Right? It ain’t nobody’s, nobody’s out there buying stocks. We are, okay. We see this as a generational opportunity. We see this as, you know, if you look at the last 12 corrections in the stock market, if you look at, you know, take the last 12 corrections that have been at least this bad, 30% or more, every single one of them had dramatically positive returns. One, three and five year out. So,  specifically three and five years out. I think one of them may have had a negative one year number, but we like we from the bar, we know that we’re going to, we’re going to be extremely thankful.

Rob:

We bought stocks in April, 2020 and the key is it hurts in your stomach. It hurts to do it in air. It’s to put the trade and cause you’re the only one buying. Anyways, we’re buying and we’re not going to replicate the mistakes that happened in two Oh eight Oh nine. And  I think this is an exciting time as much as it’s, as much as it’s really, really tough for me in my life. This an exciting time cause I get to prove my value. I get to prove my worth. So I’m pumped and I’m sure you are too late. This is a time where you’re given a ton of advice to people and they really need us. This is a time where people really need us. So I’m excited about that.  I know that it’s, I know that it’s shitty everyone. I know that it sucks to be down. I know that more than you. I’m managing your money. I see the numbers every single day and I know that it’s tough, but we’re going to take advantage of it and we’re going to do the absolute best we can to rebalance, to tweak, to take capital where we can to reallocate.  and that’s happening now. That’s happening every day.  here at the office with me, my dad and Derek, by the way, guess how many firms did you gain on my floor are still open.

Julien:

Yeah.

Rob:

Yeah. We’re the only one guys open.

Julien:

It’s awesome to hear all the things that you’re the doing and implementing,  because, because yeah, it comes down to trusting your advisor. And I know, I know all the clients that I have that a mutual between you, between us and you know, they have so much trust and you’re going to for,  because you’re going to do great work. You guys, you guys are constantly on top of things. You know, educating and Dan are definitely, definitely some leaders in your guys’ industry and so,

Rob:

so, all right, that’s enough. That’s enough. I appreciate it. I’m going to put your email here. Do some people are asking me about your email.  are you okay just putting it on here so people can reach out to you?

Julien:

Sure, absolutely. I’ll, I’ll be up. I’ll be up for responding all night. Let’s get to it.

Rob: what is it again?

Julien:

Julian, J U L I E N. dot. . Yeah, outlet sippy, yada yada.

Rob:

cpa.ca. Julian  at Talbot’s CPA dot. CA. I’m going to put it in the YouTube and I’ll let them mocks. Put it in the Facebook chats for me.  let’s keep going with some questions here. We’re getting some more questions online here.  about,  specifically.

Speaker 4:

okay.

Rob:

Sorry, just give me one second. I’m just reading this one here came from,  Eugene,  whether or not the benefits both for the companies and for the individuals are taxable. And if yes, is there any, is it permitted at the source? Are we gonna have to pay that off at some point? Yeah.

Julien:

Yeah. Great. Great question. I was at and I was listening to to you, your show the other day, Robin, someone asks that question like, well how, how are we going to pay this back? Right? Who was going to be responsible to, to pay us back? And, and you, you, you had a good answer for that. But what people need to realize, I don’t think really at this point is that all these benefits are taxable, right? So that means let’s say your average tax rate in Canada marginally is 35% right? Brace yourself for, you know, 2021 when, when that is going to be added to your taxable income and there’ll be collecting a lot of that benefit back through taxes. So everything is taxable, but they’re not withholding any tax today, which means all of the tax is going to be doing next year. So at something, and I’m glad you didn’t.

Julien:

Great question. I’m glad you reminded me to, to kind of talk about this because it is something that we are strongly warning our clients about. You know, putting notes on everybody’s tax trend saying, Hey, just so you know, all of these benefits that you’ll be getting will be taxable next year. So as similar to, I don’t know if people remember the UCC V when it came out that was taxable, it was kind of a little bit of a shock.  this one, this one’s going to be the bigger your benefit, the more your tax is likely to be.

Rob:

Question about farms and farm land.  or specifically farmers. I had a call this morning with one of my clients who they operate a farm.  it’s going to be tougher potentially for them to prove revenue numbers because a lot of them are maybe not selling their stock, you know, either their cattle or their crops or whatever they may have.  subsidies. And how do you think you see another program coming to farmers? Or do you think this one will be all encompassing for farmers?

Julien:

Yeah. And so you haven’t done a whole bunch of, of  they haven’t given a whole bunch of information about the agriculture industry in general beyond the, they seem to be focusing on, on businesses and individuals first, which is okay.  but I mean are a ton of Meyer cultural clients, cause we do a lot of, a lot about, I’ll try to tell associates, right? They’re asking, well, does this apply to me? How is it going to work? Right? So they have, they have offered a back from the FCC similar to how they’re backing a BDC,  through additional lending and things like that. It’s a farmers,  you guys are still eligible for the $40,000 loan if that would work for you guys. But when they did say, and they haven’t talked a lot about it, but, but what I’m really into it is that they’re going to get offered continued support through their existing business risk management support.

Julien:

So it’s more of the more popular ones in your aggregate invest in your aggregate stability. Okay. So if you’re telling us this client, you’re almost almost for sure an aggregate investing. If you’re, if you were in the agricultural industry and you’re not an avid reinvest and you’re not sure what I’m talking about, you need to talk to me because that’s a huge awesome program that every farmer should be in. But I raised the ability as a is more of a, of an insurance. Okay. So, so they, they talked about  increasing those benefits. So what my recommendation for people in the agriculture industry is talk to professionals, call me out, we’re offering a free consultation on anyone looking to,  to find out if AgriStability is something good for them to go into.  so send me an email, give me a call, a free consultation to see if your, if you should go into that program. But to me being in that program is giving all the data to the government to decide whether or not you should get an extra benefit some way somehow down the road. Who knows what’s going to happen with them, with the, you know, the crop markets or the cattle. Cattle was down like crazy. I think Rob, I’m sure you could tune firms at, so

Rob:

I had a client on that point. You need a real quick, I do. I spoke to two clients, one in the  the hog industry and one in the cattle industry. My client in the hog industry told me that his fixed price contract per isoline or I think it was a young pig I think is what they call him. My Celine’s.  he was down like 40% on his fixed price contract and it was a ticket or leaving. Otherwise we’re breaching this contract and a very similar situation to my cattle client that I spoke to in the last couple of days that are basically telling me we don’t have a choice. You’re either bridging this contract and we have to Sue them. We have to try to collect and no good luck or we take 40 cents on the dollar for now.

Julien:

So it’s, it’s absurd. Right? So, so the Irish stability program gives a lot of data to the government to see how your farm performed comparatively to previous years. Right. So, so similar like I was saying, finding things. But the AgriStability program, we’ve seen this in the past before where there’s disaster areas and things like that. People in the AgriStability program often get automatically enrolled to these benefits for these additional benefits over and above what agric simply does normally speaking. Okay.  so if you want to try and avoid delays, strong, consider going to Iris ability. So keep in mind, AgriStability is still not for everybody. Okay, I understand that.  but if you’re on the fence or you’re not sure or if you’re not in and you’ve never heard about the program before, you need to talk to your advisor. And like I said, if you don’t have one that, that, you know and trust, send me an email. I won’t even send you a bill. I just want to make sure that people that should be in this program are getting, are getting the information that they need and which was, which is why I’m so happy to be on live with you today around because there’s so much information to kind of go through and, and it’s so hard to keep up even for ourselves. It’s so much.

Rob:

You’re a half decent guessing and might just bring you back on the shoulders. So good. And there’ll be so many answers that are going to come in the next couple of weeks that we’ll have more opportunity to talk about this. Maybe when more stuff has been firmed up maybe in three or four weeks or something. I’m getting a question here online from rich. The question is basically, it’s a long question, but the question is basically he’s not getting laid off stable income from his wife. She’s working from home. He has an ability to defer his mortgage payments through his bank and invest that money. I guess this is more a question for me than for you. Would you recommend I defer? Take advantage of the,  the deferral and just plow that into the market.  the numbers that he’s talking about are about six, 700 bucks biweekly. So I guess my answer to that would be, it’s a relatively small number that you’re deferring over the course of three or six months.

Rob:

depending on your net worth, you know, it’s likely not gonna have a huge impact. I mean, if you were able to buy a hundred grand, you don’t defer, defer for a year or two years,  you know, you, you’re able to defer that for, maybe you would consider that, but a few hundred dollars for a few weeks,  I would likely advise you to just continue to pay your mortgage. Don’t apply for the deferral. Don’t worry about the credit score. Don’t worry about the communication with your bank. Don’t worry about tacking on principal payments at the end. I would likely advise you to just continue to pay. If you’re in that situation where it’s, you know, less than a thousand bucks,  that the net benefit will be, there’ll be small, I don’t know what you would think about that.

Julien:

Yeah, actually that’s a good question. I would like to be honest, I would’ve, I would have,  had the exact same question for myself. Should it, should I differ? And if I, if I can,  because you, you’d expect the obvious dancer to be, I mean, invest as much as you can if, if, if you’re comfortable to do so. So I, I appreciate your point of view, but I think it kind of echoes a lot. What I’ve been telling to some clients is that continuing to try and, and pay your bills and stay on top of things for as long as you can use these subsidies for as long you can. Right? But just because you’re employed today, we don’t know how long is going to last. Right. And you don’t, we don’t have that crystal ball. Right. So if you, if you’re in a position to stay on top of things, stay on top of things. Right.

Rob:

Question here. Coming from Brian, am I understanding correctly that the $40,000 loan is applied to our local bank? It’s applied to in our local bank.

Julien:

Yeah. Yeah. So you’re, yeah. You’re your local bank. You’re your, we all have the tools to administer the small program.  so, so yeah, the, they would have the direct details. I know I talked to my banker,  yesterday or day before just to see if their, the application process was, was open yet.  he told me, no, not yet. I didn’t check today. I meant to, sorry, sorry about that guys. But,  from what the w w what I can understand is that as soon as it’s open, there was going to be an online filtering quiz kind of thing,  to see if you apply and if you are eligible to apply, then you get screened in to talk to, to wrap or something like that, if,  to, to physically get it set up.

Rob:

Question here from Carlo cucumber. I dealt, that’s his real name.  asking about tax loss selling. I guess we can kind of both,  talk about this in a non-registered account. So real quick, tax loss selling folks would be selling a security that has lost its value. Now this must be done in a non-registered account because you do not get the losses in, in a registered account like in your RSP or in your TFSC you, you’re not get the losses so you can forget about them.  so would you recommend tax loss selling in a non-registered account? The answer would be yes. I mean, if you own a security that is of quality that has fallen 30, 35%, and you are able to find a proxy for that security. So for example, you would sell one bank and replace it with another,  on that same day and you avoid the market timing risk. Our view would be you’re crystallizing a loss there. You’re resetting your ACB. You’d be able to offset that loss against prior gains and that in the prior years. And you know, you get to carry forward that loss. You would agree with that, Janine?

Julien:

Yeah. Chris  has been a part of the tax book for, for a long, long time. There are a lot of rules surrounding tax losses and, and, and stopping market manipulation moves like that.   in general, right. So, so if you’re going to do some, lots of finding, make sure you have, you know, advisor like rock or something like that, who, who can steer you through those because  you know, we’ve seen it many times before. People are doing their own financial advising or not. They’re all tied time. They’re trading in their treating into tax problems, right? And they think they’re being,  sneaky or good and all that kind of stuff.  but I mean the tax have been been around for quite some time.  so there are some, some stop loss rules and things like that that can, I can deny some of your losses. So make sure you have a, if you’re going to be doing sewer treatment, some trades and things like that, make sure you talk to your environment,

Rob:

give us a call. This is what we do. Right? So what’d you don’t want to do is buy the same stock in a different account or you know, non arm’s like the County. You can’t just buy us, sell a stock and then rebuy it, you cannot do that. And you do not want to go out of the market for 30 days right now because as I’ve mentioned on the show before, being out of the market for 30 days in a period like this, and that might be two years worth of gains, right? So you do not want to be out of the market. So if you’re doing it, you gotta make sure you’re optimizing your tax loss selling. And that’s not that easy. Especially specifically if you’re getting into illiquid stocks. You might get beat up on the sell and the bias. So I would strongly advise you deal with someone like us. A question here.  I believe Derek,  is quoting,  a S a website or something. He’s saying assistance received under the, under either the wage subsidy would reduce the amount of revenue, remuneration expenses eligible for other federal tax credit calculated on the same remuneration.

Rob:

So the wage subsidy is reducing the amount of re remuneration expenses that are eligible for a federal tax credit calculated on the same remuneration.

Speaker 4:

 

Rob:

he’s asking you clarification for that. Do you have the YouTube stuff on generic or do you want

Julien:

you know, there’s up in front of you. Certain guys, like a,

Rob:

that’s a tough question. No, no worries. We can maybe,  yeah, that’s a, that’s like a triple negative question there. So it’s a bit of a tough one.

Julien:

I went on an answer and I don’t mind, you know,  send them over to me at the end of the thing and I’ll, I can provide some sort of summary or some clarifications or if I might’ve missed folk or something like that. It wasn’t clear.  I have no problems kind of going over and reclarify.

Rob:

Okay.  so it’s the end of tax season. You finally finished, your last tax return is 2020. It’s been a really long year. You’re going home, you open the cupboard. What’s the drink of choice in your, in your car?

Julien:

Oh yeah. one of my friends. Do you have, it got me a 15 year, a Oban scotch. So I think,  I think that’d be the first, first drink I pour. How about you run them?

Rob:

Probably be a bud light,

Julien:

easy drinking, right? Like

Rob:

yeah, I’m a simple guy. The scotch, I never, Ooh, I struggle with that. It’s like, it tastes like turpentine, like I guess a acquired taste. Right? Absolutely. Yeah, absolutely. That’s kinda how I felt when I started eating the old cheese, like the really old cheese and then it just like now I love it. I love the old tea. I can’t drink the mozzarella standard or whatever it’s called. I need the extra old, the old, the older, the better.  I got a question here about,  well this one is again, is more for me, it’s a positioning portfolios for a bottom. I’ve gotten this question pretty much on every show in the last,  every, I’ll answer it again cause I think it’s a very important question. Positioning portfolios for stock bottoms.  we’re a bottom is effectively the, the Nadeer or the opposite of the apex.

Rob:

So when we kind of peak at the bottom, that is a true stock bottom. So a couple of weeks ago, we bought them on the TSX on the Dow and on the S and P on all the indices.  we then rallied a bit. We had what we call a relief rally. I believe there are three phases to a stock market crash. This is a note from,  our chief economist Tony Dwyer, which I’m, I think I will get on the show in the future. But,  the first is a crashed massive selling. Everyone who wants to be out as out initially people that should not have been in the market. The second phase of the relief rally, the relief rally is people coming back in and saying, you know what? This isn’t that bad. I can buy stocks at 30% off. I should be buying stocks right now. You call your advisor, you call Rob, you know, you scrounge up 50 grand, a hundred grand quarter mill or whatever it is.

Rob:

And then the third phase is the capitulation or retesting of the lows. And that typically happens when the second wave of bad news hits. I do not think we’ve hit the bottom yet. I’ve said this to my clients on Monday. I’m seeing it you guys now, I said it last week. I believe there is another leg down yet I believe you’re in for volatility. We still have a few factors that have to happen. I had some notes here that I had all my reasons why, but basically a bunch of things have to happen. One, we have to, we have to get, basically nobody has. We have to get wash all the speculators out of the market. We have to get the volatility down before we can say we’re out of the relief rally. We’re not even out of the relief yet because I don’t know if you noticed the market this week and you probably not because you’re doing tax returns, but this is all like, well, I did a, we’ve now had like seven or eight consecutive days here without a 3% swing, so we haven’t had that in forever.

Rob:

It used to be 4% 5% 6% 8% so this week we had three up days and only one down day. So that I would classify as a bit of a relief rally. There will be a period here where we know we’re going to get a lot of deaths next week. We know there’s going to be a lot of cases. We know there’s going to be negative sentiment. We know people are home, they’re stuck at home. I believe there needs to be another leg to the down and  when that does happen, we kind of set the target,  on my call today with my thing. I’ve every set the target for 17, eight on the Dow,  for 11, seven on the TSX and 2300 on the S. and. P. I’m going on record saying that. So I mean that’s a guess where we think the low will be around that point.

Rob:

All the cash that we have left on the books in our client’s accounts, we’re going to be pretty much fully invested at that point. So hopefully that answers your question. We want to be fully invested at that point. We do not Julianne, to be clear, we do not change risk tolerance is required if you are a balanced investor. Just because the stocks are 35, 40% cheaper, that does not mean you’re going to get a pile of stocks right now. We don’t do that, right? Or reason we don’t do that because, because not everyone can handle the volatility in the same way. There’s a reason you’re a balanced investor is because want less volatility. Right? And if you want less volatility, you’re also accepting less returns, but you can’t have it both ways. You can’t just say, Oh, now that the market’s down, I want a ton of stock. So you’re rebalancing though. We’re effectively rebalancing. So now that the markets have moved, the stocks are worth less than the bonds. So therefore you could do a bit of rebalancing, take advantage of that.  so that’s our view on, that’s our view on the bottom. How are we going to navigate this bottom and how long it’s going to be. I really don’t know. But I expect that kind of bottom capitulation to happen in the next, I dunno, two to six weeks. How about that? Again, guys do not take this as investment advice. What’s that?

Rob:

Well, I’m, I’m basically reiterating a combination of some predictions that we’ve made a can accord to what we feel. This is not investment advice. You’re not take this as investment advice. If you’re my client, we’re taking care of this for you. Don’t worry about it. If you’re not my client, do not go trading on this. Talk to your investment advisor if you don’t have one. Call us.  those, that’s a big disclaimer that I want to put on those productions. Okay, folks.

Speaker 5:

 

Rob:

maybe another question here from Dennis.  I have conservative TFS says that I’ve lost around 7%. Is this a good time to move the investments to GICs to avoid further losses? What would be the advantage of doing this if there are any? Just another question for music. Yay.  but I’ll, I’ll address it. What do you think that answers again

Julien:

and based on different here for you guys? I’d say I don’t want to keep my upswing stocks and my TFSC but that’s just me.

Rob:

Yeah. So I would say this, Denise, if you had conservative investments and you’ve lost around 70% your asset allocation is likely something like 30, 70, 30% stocks, 70 bonds, or maybe even 2080,

Speaker 5:

 

Rob:

to make that shift from TFS SES and investments, very conservative investments that I’ve lost 7% of GICs, you’d effectively be losing that. There’s no way you’ll gain it back and you’d be locking in GIC rates that are effectively the lowest that anyone on this call. Anyone on this call has ever seen. No one on this call has ever seen GIC rates as low as they are today. That being said to me, I don’t know your risk tolerance. I don’t know. Maybe you should have never been into stocks. Maybe you are not the guy that should have owned conservative investments. Maybe you should have only been GICs from day one. So I’d have to have a chat with you. At the end of the day is, are you sleeping? Are you sleeping at night? If you’re not sleeping at night, and if this is eating up inside to the point that you can’t function, we need to take a look at the portfolio, the asset allocation, because at the end of the day, who cares what the returns are.

Rob:

We’re only on this planet once and we have to take, make sure that we’re healthy and that, you know, the money part tent eat inside of us. It tent, it just can’t get there. It’s extremely important. I’m a big believer of, of health and health and well, you know, my sister runs a gym. As you could tell, I’m, I’m incredibly fit. No, I’m not. I got like two next here. But  I, I do believe that it’s important not to stress out of what your portfolio. So I would take a long, hard look at what your asset allocation is Dinny and maybe you should have never been in stocks in the first place. So that’s a big part of our job. Right. Hopefully that answered your question.

Speaker 5:

Mmm.

Rob:

Another question here. I don’t know the answer to this one’s you get from Sean. Todd. I heard there’s a $400,000 small business loan made available. She’s probably referring to the $40,000 one, right?

Julien:

Was a 40,001 for sure. A and B, like through BDC and FCC. There’s some, there’s considerable loans much higher than that. So yeah, 400 sounds like it’d be 40. That one’s your BDC and FCC, like those ones are more so dependent on your financial statements and your financial health as opposed to a set limit per se. So,

Speaker 5:

okay.

Rob:

Okay, good.   is there anything that I didn’t cover that you think I should definitely address with respect to deadlines? I mean, I did kind of want to ask you a little bit about,  you know, collections. I’m assuming that’s being stopped right now.

Julien:

Yeah. So any sort of audits issue, like do not like serious, I’m starting meeting new audit issues. They’re not, they’re not actively pursuing new collections measures. So people who owe money with CRA,  they’re stopping it unless it’s really severe. Okay. If people have really not paid CRA, then they will still go after them. But no, if you’re, if you’re only a you 1000 bucks from last year’s taxes and because you know, taps was tight or whatever, you can make the payments made, they’re not going to be bothering citizens with, with phone calls or audit inquiries or anything like that. So

Rob:

student loans, what’s happening there?

Julien:

Sorry. Excuse me. Yeah, they did say they were going to be suspending a interest for the next few months. I believe the next four months is what’s been announced, six months, six months for civilian loans. So,  so that’s great for students.  just had a little freeze on that on those guys.

Speaker 5:

Okay.

Rob:

anything that I missed with respect to UGA? We run a lot of questions here online.

Julien:

Yeah. Yeah. No, I think,  I think covered loss here.  just kinda going through some notes. Yeah. CCB is going up,  for some people with kids, right? What’s the acronym for Canada child benefit, right. So that was, that was announced for,  for, for anyone with kids that are received the benefit, it’s automatic and they’re going to be apply does give me a onetime period for, for  for if you get the GST credit, well even they’re going to go a little bit beyond the accrued, normally qualify for those or the GC credits, which are for a lower modest income,  sees the cat child benefits going to be with, if you currently get a catch all benefit, you can expect a bump,  in that benefit as well.

Rob:

Okay.  are you wearing pants right now?

Julien:

Yeah, yeah.  one of the five days a week,  wearing pants for sure.

Rob:

Good, good. I saw an article today how it’s important to continue to dress like you do it at home even though you’re even at work even though you’re at home.  how about usual yang questions for me? Anything that we missed? I mean, I could, whatever I was going to be, or if you got anything you’d like to ask me,

Julien:

is there any specific industry that you got to be buying into right now? In the industries you’ve gotta be avoiding.

Rob:

Okay. So there will be a time. So cyclicals the cyclical stocks are they kind of riskier stocks,  you know, oil and gas,  you know, materials, anything that’s more cyclical in the economic cycle relative to defensive stocks, defensive stocks would be financials and real estate and, and,  infrastructure and,  telcos, there is going to be a time when when your advisor and your portfolio manager will likely want to shift you out of defensive stocks and into cyclicals so riskier stocks.  you know, I don’t think that’s the time now necessarily. We preach quality right now.  our view has been and will continue to be strong balance sheets, good managements, industries that can sustain movement and you know, that can pay a continued dividends right now if you’re not sure, cause you didn’t, if you were to call me today and say, Rob, I scrounged up a hundred grand, I want to put that to work.

Rob:

What do I do? How do I invest it? Here’s what I would say to that. I’d say let’s take a portion of that, call it 50 50 grand of it and let’s put it into the market now or or around now plus or minus a few days. And then I would, I would kind of wait on the other half and I would focus on quality stocks. So you know, I’ve mentioned some of the sectors I think are anything that’s got a strong balance sheet, good cash flow, good management can sustain movement in the, in the, in the market. And then the other 50 what I do is I would wait for this, for this dip. What we don’t want to happen. What we do not want to happen is a guy like Juliana who was a client, calls me and is like, I’ve saved up money yet.

Rob:

I’ve done well and I want to put it in the market today. And then we’re so greedy on the bottom that we end up delaying, right? We don’t want to do that. We don’t want to delay and miss the rally. There will be a rally folks. I don’t know when it’s coming, but we do not want to miss that rally. So I would leg in a portion of your equities now and then I would leg in a portion, either at a fixed interval, one month, two months, three months, or when the market falls, because you do not want to be out of the market for that long.  so I’m not sure if I answered that question, but I think there will be a time you want to get out of cyclicals and into, sorry, out of defensives and into cyclicals for now, we’re still, we’re still believers of quality quality assets. Oh, I just got a question texted to me. How about that? Can I, I can’t believe I’m answering texts right now. Can I stop making my monthly corporate tax installments that I’m making for 2020? I think we’ve already answered that, but

Julien:

yeah, that comes up. If your installments after March 18th, those installments would also be delayed  with installments and your account should be giving you an installment schedule. So if your installment was due February, February 28th, you still gotta make that installment. If your an installment was due March 31st, that one gets deferred. No interest.

Rob:

Okay.  here’s another question and this is maybe a strategic planning question. In the event my corporation has extensive Tash reserves, would there be any benefit to removing it for investment? Well, I think I would ask a further question to that James first. Now is the cash in your operating company or is it in your holding company? I think that’s a big one. I’m sure as you would answer that question. So again, if my corporation has extensive cash reserves, would there be benefit to removing it for investment?

Julien:

Yeah, an excess cash is a big problem a lot these days, especially as there’s been changes to, to not just from  changes to the excess cash flows and stuff like that inside of corporations.  but typically, typically I don’t recommend withdrawing whole bunch of cash from your corporation to invest personally if it’s already in stock column your corporation,  unless, unless your advisor telling you that swing is going to be so great that you recover all of that tax that you have to pay.  and I don’t know, maybe you’re out, but you can add some.

Rob:

No, I think what I would do, James, I think what I would do to answer your question, James is clarifying that it’s in his operating account. So first of all, if ever you want to sell this company, I would take a long, hard look at having a holding company for that. Also liability wise, you know, I don’t know what you do for a living, Jim. I don’t know what that business is James, but you know you don’t want to have a ton of cash in case you’re exposed to liability. You know someone, I mean civil liability, like owing millions of dollars for for a wrongful, you know a tort injury or something, throw it to someone or like breach of contract or whatever. Maybe you want to have that money out of the operating company. You want to have an in a holding company generally. And then once it’s in the holding company you should invest it directly in your holding company. Joe. So, I mean, again, this is not advice because I don’t know your personal situation, but generally what our clients do, operating company holding company, they move the cash out of the operating company into the holding company. The holding company becomes a bucket that holds cash and then we open an investment account and the cash flows from the bank account and the holding company to the investment account here at Cana court where we then invest the holding company cash. I’m sure that’s the scenario, UC as well.

Julien:

yeah, we see that a lot as well.  like I said, there’s quite a few changes this past year, so we’re receiving a lot of people filter money through family trust and to invest in the company or something like that.  right. With, with tax on split income rules being, being new in, in that kind of stuff, you gotta be careful. So again, it’s one of those situations that is very personal. It’s very unique. It’s not one of those things that, Oh, my neighbor is doing this, that or whatever. You need to talk to your professionals and making sure that you’re professional talking to each other as well. I know, I know I’m constantly communication with, with Rob, if you have a mutual client or something like that, to make sure that we have the best plan for each individual because Rob money planning something with your investments that,  if I only knew what he was doing, maybe I could offer something to enhance that plan or do it better or structured in a certain way.

Julien:

Or maybe I’m recommending something to tilt or Tash in a certain direction and that’s making Robert’s planning no good. Or for whatever reason, cake is, rules are complex. Structures can be very complex. That’s why you need to have some advisors that you trust and that talks to each other.  I’m a big proponent of encouraging people to talk to all of their advisors and how their advisors talk to each other and a good sign. And I like to tell my client a good sign is that if all of your advisors are telling you the same thing, that’s a good thing.

Rob:

Yeah. So, yeah, one of the reasons that you’re actually on the show to these games because you’re an incredibly proactive guy. So my beef with accountants, I mean my, I love accountants there, they’re fantastic for the most part, but my beef with them is generally they’re reactive, right? So that you, you, you ask an accountant a question, can I write this off? You get the answer. What I really like about you guys in your firm is that you’re, you’re proactive. So you try to walk a mile in the client’s shoes and then we can decide together what makes the most sense for the client. So you’re, you’re spot on with that. There are so many things with respect to the changes, like the family trusts and you know, if you’re not getting quality advice there, you know, even even guys like us, we’re not account, I’m not an account, but I mean, you know, I have a finance MBA and I, I, you know, my mom’s like all my brothers and account, I’ve seen enough of it that I know when something doesn’t look right.

Rob:

Right.  so, and you’re the same. You’re, you’re not an investment advisor, but you’ve seen enough investment statements that you know, when something doesn’t look right. Right.  I’m gonna ask you another question here and then we’ll get wrapped up soon here folks, we keep the questions coming. My accountant sent me a notice, the taxes owed for 2019 as an individual that the payments must be made by April 30 30 April 30th, 2020. So a notice for taxes owed for 2019 so that would’ve been that the payment must be made by April three. I would imagine that’s not personal. Right. To me that would be a corporate

Julien:

if it’s personally, if the talent’s saying that or, or I could see even some of our letters have even gotten printed saying, Hey, your taxes are due by April 30th. You printed it before we updated our templates or something to that effect. Right. So, so if something looks off for, you’re not, not your reading on, on what your accounting is telling you, just call them. Just verify. Right.  because yeah, they said all the stuff happened so, so fast. Right? Yeah. And so our backend is doing as been crazy busy trying to upload, update people’s templates to change the, the deadlines and things like that. And so, so it could be something like that.

Rob:

Maca is saying it’s personal so I imagine that that’s been deferred most likely that that’s been there for, well I don’t know your situation Mac, but most likely that’s been deferred. That was probably a letter that got sent out, you know, in the past.   we, I realize now I’m at about 75 minutes going on. Here’s a gay and  it’s been a bit of a long stretcher. We did get a ton of questions today and I really, really appreciate  the guests for tuning in. Hey as you need and we’ll get you back on the show again. I’m going to wrap this up folks. So I’m thankful cause you can’t get any, a partner, a Talbot and associates. Again, I’m Rob Taito from Rob, teacher.com head of the teacher wealth advisor group here at 10 accord unity wealth management. We still do not have a name for the show. Does anyone have an idea for the name for the show? Some of the ones I I heard were teacher talks, like kind of a play on words of  you know, Ted talks.  we’re in this together.  get rid of the there and straight to the bowl.  you know, all sorts of play on words between bear and bull.  something about good news, something about being optimistic.  if you have ideas you can do you have an idea for this, the name of the show

Julien:

and I really felt this question was coming on even before I came on. I watched you last year and I couldn’t come up with something clever enough that I knew you really appreciate. You know what I mean? I came up with a couple of duds, but very not.

Rob:

We’ll work on it. We’ll work on it. We’ll do a FaceTime, you and I and we’ll have that. We’ll have a, you’ll have a scotch and I’ll have a bud light and we’ll figure it out.  thankful to everyone for tuning in. Again, if you have direct questions, go to www dot. Speak to rob.com as you’re gay, his email is in the chat. Would be happy to sign up to our newsletters. Please subscribe to my YouTube channel, subscribe to my subscribers, or like my Facebook page.  I, I’m thankful for all of you guys for tuning in, guys. That’s it for now. We’re going to sign out and we will see you Monday at 3:00 PM yes.

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