Canadian Personal Finance Blog

Thanks to COVID-19 Office Planners may finally be forced to give up on the Open Concept work environment. For those not sure of the term Open Concept is where the team workspace is open there are few if any walls and all can easily see each other and speak to each other. The concept was supposed to create more communication and co-operation between team members.

I have worked in these environments throughout my 35 years of working in office spaces, in varying styles and such, and I have loathed the concept completely. There is no privacy, there is no sense of personal space, and you get to learn far too much about your co-workers lives. To be fair, in some instances this model can work well, if the team is a support team that all share tasks, however, that is the exception, not the rule.

The nicest office I had, was when I first graduated, it was spacious and had a locking door, and every office since then has been less and less ideal. COVID19 and the now provable spectre of the Pandemic, open concept offices are the worst design to battle the spread of germs and viruses. One might even argue, that it is an optimal design for the spread of germs, viruses and rumours.

Erin Bromage wrote an excellent essay about the spread of COVID19, “The Risks – Know Them – Avoid Them“, he points to a CDC paper, “Coronavirus Disease Outbreak in Call Center, South Korea“, which has an office lay out that is similar to many now set up in many different companies.

The figure shows how the proximity of folks sitting near each other spread the COVID19 very quickly. There were very few walls and impediments to the air borne spread of germs.

The direct quote from the CDC report is:

This outbreak shows alarmingly that severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) can be exceptionally contagious in crowded office settings such as a call center. The magnitude of the outbreak illustrates how a high-density work environment can become a high-risk site for the spread of COVID-19 and potentially a source of further transmission.

Coronavirus Disease Outbreak in Call Center, South Korea

Anyone who has worked in this kind of environment knows full well that once someone on the team picks up a cold or the flu, it will easily cycle through the group, so this information is by no means surprising to me.

September and the start of school usually meant someones child would bring home a new flu or cold, which would then be passed to their parents and then throughout the team sitting in close proximity (as a crude example).

Alternatives

The alternatives is going back to a more segregated model, where teams may be in proximity but they are closed off from other groups (and hopefully each other) using walls. This is a less optimal use of space, however, now the argument of passing of disease can no longer be easily ignored.

Companies that have this configuration are now scrambling to alter their floor layouts to allow a resumption of work in a safer workspace (safety from virus spread). I have already read of temporary walls, and plexiglass going up, but these will end up only being interim solutions.

There will be a great deal of money spent to retrofit these office spaces. Open Office was the office space of tomorrow, are they now the office space of yesterday?

Contrary Views?

Of course there are, Bloomberg is of the opinion “Why Open Offices Will Survive“, seems more like optimistic hoping on their part.

The Associated Press seems to be more on my side with, Cubicle comeback? Pandemic will reshape office life for good.

Coughs and Sneezes Travel How Far?

Now in the 2nd month of the COVID-19 lock down (May 2020) many folks are starting to see exactly where they have been spending money. Those lucky enough to have kept their jobs, but were asked to try to work while at home, now have a good snapshot of their spending habits, while at work.

Now, you should have a good perspective on how much you spend on:

1. Commuting, gas costs, or mass transit costs. Did you ask for a drop in your insurance rates for your car? You should. What if you chose to take mass transit when you return to the office? How much would you save.
2. Eating and drinking at work. How much were you spending on a few coffees, and your lunch? How about those Friday lunches out with a few drinks, or after work drinks?
3. Clothing and dry cleaning and such. You might not have a solid hold on how much you spend here, but you haven’t really been able to buy new clothes (as easily) these days.
4. Various subscriptions and gym memberships and stuff. You aren’t still paying for those are you?
5. What extra costs you have incurred not going to work
   • Extra electricity usage?
   • Internet, did you upgrade your access?
   • Did you add new streaming services?

These expenses and a few others I didn’t mention should help you see where your money is going.

What To Do?

With this data you could:

1. Make a budget for the COVID19 era (for lack of a better term). How much should you spend while you are locked up at home? This may be helpful so you now understand what you are spending money, and where you can save money.
2. Make a budget for your return to work, and maybe cut this spending in 1/2, giving you more money to live with? When you return to work is it going to be full-time? If not, maybe you need an interim budget and then a return to full-time work budget?
3. Figure out if working at home full-time, part-time or occasionally might be a thing for you? Many folks like working at home, I enjoy the interactions of an office, but you at least have a view of how this might work.
4. See how much money you have saved and maybe put that on your debt load?

Something for you to ponder while you are at home not spending money.

Another day to celebrate with the proletariat, our brothers and sisters who have thrown off the shackles of oppression, happy May Day! During the COVID19 lock down celebrating any day, is something. I think it is Friday (May 1, 2020) today?

More talk of restarting things in Ontario, which will be a slow process. In Ottawa things are very bad in our Seniors and Care Residences, and that is a concern for all of us. How to keep our Seniors and those who need our help, safe, is the most important plan.

Not sure about the wearing a mask thing. I did see that the NFL on-line store is selling NFL Team themed masks, which would be cool. Wearing a Vikings mask would be good, but I would really like to walk into a bank wearing an Las Vegas Raiders mask.

Now is the time to ask for help or lowering of fees from your Bank, Insurance Company, or Internet Provider/Phone Company. Banks have claimed they will lower rates, but I haven’t seen it (TD’s Unsecured Line of Credit is at 5.60% (their prime is 2.6%), yet my Tangerine Line of Credit is at 2.45%). Your Car Insurance should be lower, you are not driving as far, yet I didn’t get much back from my Insurance company. As for Bell, they have actually raised my rates. Yes, the answer is always NO, unless you ask. If your income is curtailed, you should ask for all the help you can get.

Past Writings

I did an interview with Tom Drake and that seems to cause more posts on the topic of RDSPs:

• Taxes Delayed, Money Lost , remember that the filing date is June 1st for 2019 taxes, however you only have to pay on September 1st.
• Financial Echo Chamber is something we all live in. We enjoy hearing peoples opinions that are similar to ours. It is important to hear divergent ideas if only to allow you to understand the scope of your opinions.
• More RDSP Talk is me clarifying two points that I made in that interview with Tom Drake. They are important points and well worth reading (lots of interesting discussion as well).
• I played my TD money shuffle RDSP game again this week. I really wish I could deposit directly into my son’s RDSP, but TD will not fix this issue.
• I can’t believe this crap is still going on, but in ‘Urgent measures’ needed to help group RESP subscribers during pandemic, we see the smelly underbelly of the financial world.

More Financial Writings for Troubled Times

Some interesting reads for your weekend, while you are still practicing social distancing (I hope).

• The computer algorithm that was among the first to detect the coronavirus outbreak, is an interesting video which highlights Blue Dot a company that you will hear more about in terms of Pandemic Predictions.
• Quebec appeals judge invalidates $517,000 debt incurred following rock-paper-scissors games, I’ll just leave that one here for you to enjoy.
• How To Qualify for the Disability Tax Credit and RDSP, they really will let anyone onto these Podcasts on line.
• Another Emotional Reason to Take CPP Early, Michael James giving you some insightful ideas on your retirement that you should be considering, or at least reading.
• I was happy to hear that the COBOL programmers came through and fixed the Government systems that kept falling over. Remember FinTech’s Foundations COBOL, and it will continue on for a long time.

Tweet of the Week

Gail Vaz-Oxlade has been posting about her Master Money Class, and this tweet is an important thing for folks with kids with a Disability Tax Credit.

This one from the New Yorker is a bit too topical.

Video of the Week

I must admit I am a bit of a Fanboy for Stephen Fry, fairly sure I’d watch him read quietly for hours.

Preet is showing off his prowess in Financial Matters, and also his ability to grow a very bushy beard.

One more from Doug Hoyes, which really does make me sick.

Random Thoughts from the Past

• Unemployment Spikes, Easter and #MoneyTalk (April 11^th)
• Covid-19, Stay Home and #MoneyTalk (March 27th)
• Dusty Typewriters and #MoneyTalk (November 8th)
• March Madness and #MoneyTalk (March 30th) 
• Lent Begins and #Moneytalk (March 6^th)
• Christmas Treats, RESPs, The Markets and Polkas and #MoneyTalk (December 17^th)
• GM, PC M/C Changes, Podcasts and #MoneyTalk (November 30^th)
• RDSP Awareness , Volatility and #MoneyTalk (October 12^th)
• Tech Infiltration , NAFTA/USMCA, WiFi, Tornadoes and #MoneyTalk (October 5^th)

A while ago I spoke with Tom Drake at Maple Money about the DTC and RDSP. After some judicious edit’ing Tom has published the Podcast here. As usual you can read about the RDSP on my Registered Disability Savings Plan page.

For those unaware there are a bunch of very smart folks that I use for research on this topic (my wife being a major contributor), and whenever I do one of these talks, I get a few things not quite right (and this is no difference). My source at ESDC (who is very patient and kind) points out a few of my fumbles: I mention that the program is 10 years old, it was started in 2008, so that is a 12 years in 2020.

RDSP and Bankruptcy

Doug Hoyes and I have discussed (on his Podcast) about the topic of RDSPs and bankruptcy, but my source now states clearly:

“The Bankruptcy Act was changed last year through the Budget Implementation Act.‎ See 67(1)(b.3) of the Insolvency and Bankruptcy Act.”

ESDC Source

134 Paragraph 67(1)‍(b.‍3) of the Act is replaced by the following:(b.‍3) without restricting the generality of paragraph (b), property in a registered retirement savings plan, a registered retirement income fund or a registered disability savings plan, as those expressions are defined in the Income Tax Act, or in any prescribed plan, other than property contributed to any such plan or fund in the 12 months before the date of bankruptcy,

Bill C-97

RDSP After DTC Lost

If the beneficiary loses their Disability Tax Credit (DTC), it used to be that the RDSP had to be closed. I waffled around this one with Tom, but the actual answer is:

“As of Budget day 2019, a RDSP n‎o longer is required to be closed due to loss of DTC. During a period when the beneficiary in not DTC eligible no contributions can be made to the plan except for the rollover of funds from a RRSP of a deceased parent or grandparent upon whom the beneficiary was dependent.  During a period of DTC eligibility, the beneficiary will not accumulate annual grant or bond entitlements. The Assistance Holdback Amount will be determined as the ten year period immediately prior to the beneficiary being DTC ineligible, and will remain that period until the end of the year the beneficiary turns 50. Each subsequent year the AHA will decrease by a year. (51-9 years, 52-8 years,… 59-1 year). The year the beneficiary turns 60, the AHA is nil. Should the benficiary requalify for the DTC, the plan will operate as normal.”

ESDC Source

So the money hangs around until the person turns 60 and then can be withdrawn, as Tom Drake pointed out should be the case.

Each time I talk about the Registered Disability Savings Plan and DTC I end up learning more myself.