Everything you need to know regarding COVID-19

Safe Pacific Update ⚓️

• Our team has been safely self-isolating at home for 7 days and show no symptoms.
• We are set up to work from home and are available to support you via email, Zoom or phone. We are not accepting in-person meetings until further notice
• The insurance and investment firms that we work with are all up and running and have put in place their own COVID-19 mitigation plans.  We continue to be updated by our supplier partners a few times a week as events unfold. All services are available – some might take additional time.
• Monday Morning Mixup is paused right now because we can’t get together to film. We are working on alternative plans to get this video series back out to you ASAP.
• Our business network of professionals is resilient and we are still meeting (virtually) on a weekly basis.  If you need something, someone in our network can probably help you.

The Importance of Self Isolation 🏥

Insurance Coverage 💰

This is general advice. We are happy to speak about clients’ specific situations by email, phone or Zoom.

Coverage for something like COVID-19 would fall under your disability insurance policy.  If you get sick and are unable to work for longer than your “waiting period”, your disability insurance will kick in and pay a set monthly benefit.

You may have stand-alone disability insurance and you may have disability insurance under a group benefits plan with your employer.

If you need to make a claim on your insurance we are here for you. Please reach out via phone or email and we can take next steps.

If you don’t have a disability insurance policy, yes you can set one up now. We are also getting a lot of calls about this right now.

Schedule Zoom or phone call here ⬇️:

Schedule an Appointment with us

Income Replacement During Illness From

👨‍⚕️COVID-19 For Physicians​👩‍⚕️

Physicians’ Disability Insurance PDI is a government-funded plan that is free to physicians, you just have to apply for it. And IncomeProtect is the regular physicians’ DI plan comparable to plans offered by insurance companies.

(Note – we do not offer this. You must get it from Doctors of BC here ⬇️)

Doctors of BC

Income Replacement During Illness From COVID-19 For Physicians:

• For physicians enrolled in the government funded Physicians’ Disability Insurance (PDI) plan, coverage of up to $6,100 will pay out after 14 days of illness, or from the first day of hospitalization. This payment will be reduced if claimed in conjunction with other insurance. Details will be confirmed by the insurer on a case-by-case basis at the point of claim.
• For those enrolled in the Doctors of BC Disability Income Insurance or IncomeProtect plan, coverage will pay out at the amount purchased, between 28 to 120 days of illness depending on the option selected at time of purchase.

Income Replacement During Quarantine:

• For Physicians Quarantined Due to COVID-19 Exposure in their Occupation:
• PDI – For physicians enrolled in the government funded PDI plan, coverage of up to $6,100 (non-taxable) will pay out from the first day of quarantine or self-isolation. APS required.
• QIR – Physicians who are not enrolled in the PDI plan, qualify for the negotiated Quarantine Income Replacement (QIR) benefit. This benefit will be administered by Doctors of BC’s insurance department, and will pay out for a maximum of two weeks in the amount of $3,050

For Physicians Quarantined Due to COVID-19 Exposure outside of their Occupation:

• Physicians enrolled in the PDI plan may claim for their time in quarantine or self-isolation, under the same parameters as noted above.
• The QIR benefit is not available for non-occupational exposure

Canada’s COVID-19 Economic Response Plan 🇨🇦

The Government of Canada has announced a massive aid package to both workers and employers during these tough times. This includes aid for employees and business owners. The official page is here ⬇️

Canada’s COVID-19 Economic Response Plan

Selected Points for Employees: 

• Income Support for Individuals via EI Employment Insurance
• Flexibility for Taxpayers
• Mortgage Default Management Tools

Selected Points for Businesses: 

• Helping Businesses Keep Their Workers
• Flexibility for Businesses Filing Taxes
• Wage Subsidy: The Govt will cover up to 10 percent of wages for 3 months
• Work-sharing program: the timeline has been extended for up to 76 weeks
• Ensuring Businesses have Access to Credit

Access all of this via your My CRA Account

EI benefits and Services 🗂

These benefits have been announced, but won’t be rolled out until April. More details are yet to come.  Here’s what we have so far:

• COVID-19 emergency benefit will be available for employees affected by Coronavirus self-isolation or quarantine.
• EI waiting period will be cut
• Documentation requirements will be loosened
• Benefits will be extended to workers who wouldn’t normally qualify for EI,
• Apply right away – there will be huge demand so get your application in early
• If you were laid off from work you can apply for EI through regular channels
• Emergency Support Benefit will provide up to 14 weeks of support for those don’t qualify for EI and who face unemployment
• Emergency Care Benefit: will provide up to $900 bi-weekly for up to 15 weeks for those who don’t qualify for EI and who don’t have paid sick leave

Note – the application website and phone number are experiencing massive volume right now so you may have to try and login / call multiple times.

Apply here: https://www.canada.ca/en/employment-social-development/corporate/notices/coronavirus.html

Special Phone Number: 1-833-381-2725

More: https://fortelaw.ca/e-i-and-covid-19-layoffs/

COVID-19 Layoffs in BC- What are the rules? ⚖️

There have already been many layoffs – especially in the tourism and hospitality industries.

Here are some things that both employers and employees should know about lay offs during this time.

(Here ⬇️ are some Outside links to an employment law firm’s blog)

https://fortelaw.ca/covid19-layoffs-what-are-the-rules/

https://fortelaw.ca/so-you-have-been-laid-off-what-are-your-options/

Dave Ramsey What should I do if I miss a Paycheque? 💵

We don’t normally quote Dave Ramsey or other TV finance “gurus” but he’s put out a good resource on what to do if you miss a paycheque.

Check it out Here!

Business Credit Availability Program (BCAP) 💼

Loans are being made available to Canadian business owners affected by Coronavirus through the Business Credit Availability Program (BCAP).  Companies seeking support through BCAP should start the process through their primary bank.

The bank will refer to EDC and BDC their existing clients whose needs extend beyond what is available.

Effective March 18, 2020, new relief measures for qualified businesses include:

• Working capital loans of up to $2 million with flexible terms and payment postponements for up to 6 months for qualifying businesses;
• Line of Credit with BDC for up to $100,000 to be repaid within five years. The interest rate is set today at 3.3%, which is very low for a business loan.
• You must have been in business for at least two years;  You must have more than $100,000 in annual gross revenues and should be profitable under normal operating conditions;  Owners and/or business should have good credit history;

Full Details: https://www.bdc.ca/en/pages/special-support.aspx

Income Tax Filing Deadline Extended 🗓

Personal income tax filings and payment deadlines have been extended.  More info on this is still coming. Here’s what we have so far.

2019 T1 Personal Returns, the April 30, 2020 deadline is deferred to June 1, 2020. There is no extension for self-employed individuals, the deadline remains June 15, 2020.

2019 T2 Corporate Income Tax Returns – there is no extension to the filing deadlines but see comments regarding Tax Payments below.

2019 T5013 Partnership Returns having a December 31, 2019 year-end there is no extension to the filing deadlines.

2019 T3 Trust Returns having a December 31, 2019 year-end the deadline is deferred from March 30, 2020 to May 1, 2020.

Tax Payments,  the CRA has officially noted that ALL taxpayers may defer payment of any tax amounts that become owing on or after today (March 18, 2020) and before September 2020 until after August 31, 2020.  This includes tax balances due and instalments under Part 1 of the ACT.  No interest or penalties are to accumulate.

More Information: https://www.bakertilly.ca/en/vancouver-british-columbia/publications/taxflash-federal-government-covid-19-economic-response-plan

Mortgage Relief 🏠

Canada’s big 6 banks (BMO, CIBC, National Bank, RBC, Scotiabank & TD) have all announced plans to let you defer up to 6 months of mortgage payments in these tough times.  Note that the mortgage payments are still due, you will just pay them later.

For more details on mortgage relief please speak to a mortgage broker. We are happy to connect you with some great ones who can give advise for your specific situation.  Reply to this email for more info.

Again – apply for all of this now because it might take a long time and there will be a backlog.

More: 

https://www.cbc.ca/news/canada/toronto/mortgage-covid19-coronavirus-cmhc-stimulus-1.5501125

https://www.cmhc-schl.gc.ca/en/finance-and-investing/mortgage-loan-insurance/the-resource/dealing-with-mortgage-payment-difficulties

Financial Decisions 💳

Many of the calls we’re taking right now are about money. People are asking what to do and what to invest in.   Here is some of our general advice to all right now.  If you want specific advice to your situation please schedule a meeting.

• Have some cash – when we made a financial plan with you, one of the first things we did was set up an “emergency fund” of 3-6 months of cash on hand.  Now is the emergency and this is the reason we strongly push our clients to have cash on hand.
• Have actual cash in your house – Have some cash in your house in case debit machines and ATMs go down or run out. This may start happening at more and more locations.
• Extend your lines of credit – call your bank now (before everyone else does) and increase your line of credit limit just in case.
• Hold off on making unnecessary purchases. Cash is king right now and for the coming months.
• If you have investments – don’t panic sell because you see them dropping. This is the worst time to make an emotional “sell” decision because you see your portfolio going down.
• Expect that there are going to be a lot of lay offs across Canada in the next 6 months as we go through this.  Shore up your business or make sure your employment position is locked up as much as you can. We are expecting that COVID-19 will end in a recession.
• If you are looking to invest in these turbulent times, don’t jump into something you don’t understand.  A lot of people are going to make a lot of money coming out of this crash – but a lot of punters are not.  We are taking a broad-based, diversified portfolio approach to investing right now.  We are betting on Canada and the United States, and not trying to pick individual stocks.  This has always been our strategy and continues to be our strategy.

If you would like to review and update your financial plan, please schedule a meeting here ➡️  https://safepacific.com/schedule/

Beware of Scams and Fraud!🚫

You can do the entire process from your computer – so you don’t have to meet anybody in person. (We are available by phone or Zoom if you need help setting this up.)

All of our investments go through the Wealthsimple platform and are professionally managed by the portfolio team at Forstrong

Sign Up Here

Here is what our partners at Wealthsimple and Forstrong have to say about the financial markets now and as we come through this crisis:

Forstrong: March 20 update “Hello Fiscal Stimulus, We’ve Been Expecting You”-https://forstrong.com/wp-content/uploads/2020/03/Ask-Forstrong-03-20-2020.pdf

Forstrong: Straight Talk on COVID-19- https://forstrong.com/wp-content/uploads/2020/02/Ask-Forstrong-02-28-2020.pdf

Wealthsimple: What the Hell is Actually Going on in the Economy Right Now?- https://www.wealthsimple.com/en-ca/magazine/news-corona-economy

Forstrong: Is this 2008 All Over Again?- https://forstrong.com/wp-content/uploads/2020/03/Ask-Forstrong-03-09-2020.pdf

Resources for Business Owners 👔

Business owners are going to have a bumpy ride for the next few months.  We hope that some of these resources that we are referencing can help you too.

McKinsey & Company: Coronavirus: Leading Through the Crisis
Insights on how organizations can respond, and what happens next

“This article is intended to provide business leaders with a perspective on the evolving situation and implications for their companies.”

• Coronavirus: Leading Through the Crisis – https://www.mckinsey.com/featured-insights/coronavirus-leading-through-the-crisis
• COVID-19: Implications for Business- https://www.mckinsey.com/business-functions/risk/our-insights/covid-19-implications-for-business
• Leadership in a Crisis: Responding to the Coronavirus Outbreak and Future Challenges- https://www.mckinsey.com/business-functions/organization/our-insights/leadership-in-a-crisis-responding-to-the-coronavirus-outbreak-and-future-challenges
• A Blueprint for Remote Working: Lessons from China- https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/a-blueprint-for-remote-working-lessons-from-china

Harvard Business Review: Lead Your Business Through the Coronavirus Crisis

“Based on our ongoing analysis and support for our clients around the world, we have distilled the following 12 lessons for responding to unfolding events, communicating, and extracting and applying learnings.”

• Lead Your Business Through the Coronavirus Crisis: https://hbr.org/2020/02/lead-your-business-through-the-coronavirus-crisis

Bain & Company: A CEO Plan for Coronavirus: Actions to Take Now

“one thing has become clear to executives grappling with the crisis: doing nothing is not an option. COVID-19 is unlike any previous crisis and taking traditional crisis-response approaches will not be enough.”

• CEO Plan for Coronavirus: Actions to Take Now- https://www.bain.com/insights/ceo-plan-for-coronavirus-actions-to-take-now/
• Beyond the Coronavirus Crisis: Prepare Now- https://www.bain.com/insights/beyond-the-coronavirus-crisis-prepare-now/

Get Legitimate, Qualified Information. Don’t Spread Misinformation.💻

Beware of misinformation – especially things that get forwarded on social media.

Some of the resources we are following are:

• Government of BC: COVID-19 Provincial Support and Information
• Government of Canada- COVID-19 Information Page
• University of Minnesota – Centre for Infectious Disease Research and Policy
• Harvard Medical School – Coronavirus Resource Centre
• World Health Organization
• Public Health Agency of Canada
• Centres for Disease Control and Prevention
• BC Centre for Disease Control

Stay Positive 😊

Poem: Lockdown 📝

Yes there is fear.
Yes there is isolation.
Yes there is panic buying.
Yes there is sickness.
Yes there is even death.
But,
They say that in Wuhan after so many years of noise
You can hear the birds again.
They say that after just a few weeks of quiet
The sky is no longer thick with fumes
But blue and grey and clear.
They say that in the streets of Assisi
People are singing to each other
across the empty squares,
keeping their windows open
so that those who are alone
may hear the sounds of family around them.
They say that a hotel in the West of Ireland
Is offering free meals and delivery to the housebound.
Today a young woman I know
is busy spreading fliers with her number
through the neighbourhood
So that the elders may have someone to call on.
Today Churches, Synagogues, Mosques and Temples
are preparing to welcome
and shelter the homeless, the sick, the weary
All over the world people are slowing down and reflecting
All over the world people are looking at their neighbours in a new way
All over the world people are waking up to a new reality
To how big we really are.
To how little control we really have.
To what really matters.
To Love.
So we pray and we remember that
Yes there is fear.
But there does not have to be hate.
Yes there is isolation.
But there does not have to be loneliness.
Yes there is panic buying.
But there does not have to be meanness.
Yes there is sickness.
But there does not have to be disease of the soul
Yes there is even death.
But there can always be a rebirth of love.
Wake to the choices you make as to how to live now.
Today, breathe.
Listen, behind the factory noises of your panic
The birds are singing again
The sky is clearing,
Spring is coming,
And we are always encompassed by Love.
Open the windows of your soul
And though you may not be able
to touch across the empty square,
Sing.

Fr. Richard Hendrick, OFM
March 13, 2020

Things We All Can Do to Help❤️

Contact Us 📞

We are open and here to serve our clients in these unique times.  Please reach out if you have any questions – we want to make sure we are here for you and guide you as much as we can right now.

Stay safe,

Laurent Munier
(604) 628-9610 x 1
[email protected]

Robert Trasolini
(604) 628-9610 x 2
[email protected]

Schedule a Meeting Time Here!