Jul 052014
 

It’s not easy being an investor these days. We’re facing higher taxes. We’re being vilified by the media, and we often feel distanced from our friends and families because of our life choices. The struggles we face are real 😐 but our voices have not been heard. Below are several examples of first world investor’s problems.

The Crude Reality

During the last couple of weeks the price of crude oil (WTI) fell slightly. As I’ve disclosed before I own many oil companies like Suncor and Crescent Point Energy. These businesses make more money when the price of oil is higher. So sadly my stocks have been going sideways these last couple of weeks.

14-07-oilglass firs world problems

Of course no one else is complaining because gasoline prices at the pumps fell slightly in recent weeks. But the lower oil price is really hurting my potential profits. Crescent Point shares are only up 12% year to date, and Suncor is only up 22%. How will I ever get by on these dismal returns? 😛

Choosing Sides

Last month the Federal government conditionally approved the Enbridge Northern Gateway pipeline project. This is great news for Enbridge investors. But most of my co-workers and friends are upset about Ottawa’s decisions. They don’t think the pipeline should be built, and they represent the majority. According to some sources, 80% of B.C. residents are opposed to this project.

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So now I’m torn. I care about the environment as much as my friends do, but I also want my investments to do well. I can’t talk to anyone about this because I haven’t told my friends that I’m an Enbridge shareholder. I don’t want to risk the political backlash. I just avoid conversations if this topic comes up. And I have to make up excuses to not join my pals in anti-pipeline protests, which looks like fun. Being an investor really puts a damper on my social life, and I have to miss out on fun activities with my friends because otherwise I’d feel like a hypocrite 🙁

Exploiting Your Friends

Earlier this year I blogged about investing in the retail chain Dollarama. Then one of my friends jokingly tweeted this to me.

14-07-twitterdol first world problems for investors

I also make money from her whenever she visits Tim Hortons, Starbucks, Target, or a number of other stores. In a previous post featuring Starbucks I calculated how much money I make from each cup of coffee sold. Unfortunately investing means taking advantage of my friends and family’s addiction to consumer goods and services. How will I cope with this guilt? 😛

Extra Tax Burden

The government raised the tax rate for non-eligible dividends this year 🙁 In B.C. for example, the average person will now have to pay 19% tax on all non-eligible dividends, up from 16.2% in 2013. Meanwhile ordinary citizens still pay just 29.7% for income tax. Dagnabbit, how come their tax rates didn’t go up? Instead of a 17% increase to non-eligible dividends, I would have preferred a smaller increase to the ordinary income tax rate so that it’s fair to everyone. It’s blatant discrimination to raise taxes on just the investors, but no one else 😕

As you can see, investors have to make sacrifices and deal with unique problems that other people don’t have to face. If you enjoyed today’s post here are some other examples of First World Financial Problems.

/sarcasm 🙄

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Random Useless Fact:

Music from the past seems better, because only the best songs are still played. #SurvivorshipBias

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22 Comments on "First World Problems for Investors"

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Paul N
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Paul N

Thanks for making that crystal clear for me. After reading that that I have a plan this week to max all my credit cards and only pay the minimum. Secondly go out and lease a few gas guzzling trucks that I can’t afford. After that I think I will sell my paid off house and buy one much bigger with a huge mortgage. (Lots of rooms to put the latest flat screen in each every time a new model comes out). Maybe I’ll get married and divorced a few time to top it off. That’s my new plan. Thanks for your inspiration.

Investing Pursuits
Guest

These people who do not invest in Enbridge directly go to the protests. If they invest in mutual funds or ETFs they more than likely own Enbridge or other pipelines indirectly.

PC
Guest
PC

Sucks to be you Liquid!! Yay, I filled up last night at $1.469/L. In your face! Only once I filled up $30 @ $1.539/L. This is the norm prices now for gas in VCR. Like it or not, we are forced to pay premium on gas always up here! I shouldn’t have sold out Suncor, now I regret. Same goes for SBUX and DOL. U win, I lose out!! At least I still got my IPL in place been performing really well lately. Woot woot. Oh the ups and downs that investors have to go through.

Holly@ClubThrifty
Guest

I mainly invest in mutual funds and not individual stocks, but know that I own shares in all kinds of companies who do unethical things. I just try not to think about it!

My Road to Wealth and Freedom
Guest

As I’ve said before, anyone who owns a Canadian Index fund owns the very same companies that they are protesting against. It really is too bad that we all, as Canadians, can’t find a national solution for the responsible development of our natural resources.

FinanceJourney
Guest

I am a Enbridge and TansCanada shareholder. I care about the environment, and voted against the Northern gateway pipeline projects.
Also, I own Energy stocks and a car. So, the price changes in gas doesn’t affect my overall wealth because when gas price goes up, so my energy stocks go up as well and if gas price goes down, I could fill gas for cheap. But, I will be getting stable or growing dividends forever :D.

Asset-Grinder
Guest

I am pro environment but most importantly I am pro profit. If the government is fine with making billions off nicotine and legalized gambling profits then I cant help to feel ok with it too.

Bummer on our rising BC rates as this affects me!!!!! Might have to move to alberta for their tax breaks. Actually nahhh their taxes arent worth the winter that comes with it. I like wearing only a tshirt outside in the winter.

Phil
Guest

I love my first world problems… I pity the many who don’t take advantage of the opportunities we are presented with… For now I’ll reap the financial rewards and volunteer my time and energy to those less fortunate, and maybe educate a few others in my ways along the way. – Cheers

Matt
Guest
Matt

Well I’m an Enbridge shareholder and I don’t see why the Northern Gateway project can’t be executed in away that is profitable for shareholders and environmentally friendly. Considering how much attention and scrutiny this project is under it will most likely be the most advanced and safest pipeline in the world. Don’t even get me started about the economic benefits of the project..maybe Native American groups have legitimate concerns that should be addressed but for all those over the top environmentalists who obviously don’t enjoy the high standard of living in this country….

Anne @ moneypropeller
Guest

At some point, we have to get over NIMBY and deal with the fact that unless we all want to stop consuming crap that’s bad for the environment, we have negative effects from having those things. My inner hippie and my inner economist have to figure things out, and they usually do.
I am concerned about the taxation direction for capital and dividend income… here’s hoping it stays preferential!

debt debs
Guest

Canada does need working refineries. I’m not sure why that is not in the planning process, unless it is and I just don’t know about it.

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