Search This Blog

Thursday, May 19, 2011

How President Obama invests

Normally we think of politicians as many things, running the gamut from honorable, dedicated public servants to corrupt, soulless tripe, and every connotation in between.  What we often tend to fail to remember is that politicians with very few exceptions are multi-millionaires and goodness how they Love investing and making even more millions.

So I ran across an interesting article last night from CBS Moneywatch called All the President's Money: Where the Obamas Invested in 2010.  So let's see the investing strategies used by the President as he sought to expand his personal finances in 2010 (article in blue font):

"The Obamas reported total financial assets valued between $2.8 million and $11.8 million in 2010. That wide range is a function of the reporting rules that allow public figures to disclose their assets within broad bands. They (The Obamas) report having between $1.1 million-$5.25 million invested in Treasury bills and another $1 million to $5 million in Treasury notes."

~  T-bills have a maximum maturity of one year, while T-notes have maturities between 2 and 10 years...   Guess this means don't expect Obama to do anything to rock the boat with the Fed that could cause him and Michelle to lose money on their T-Bills and T-notes investments.


"The Obamas reported having between $250,001-$500,000 sitting in a checking account at JP Morgan Chase Private Client Asset Management account... The Obamas report having between $200,000-$450,000 invested in the Vanguard 500 Index Fund."

~ I guess this means don't expect Obama to ever come down hard on JP Morgan Chase either, especially when his current Chief of Staff, William Daley came from there...

"The president continues to collect royalties from his two mega best-selling books. The financial disclosure form says he pocketed between $1 million and $5 million last year in book royalties for "Dreams from My Father," and between $100,001 to $1 million for "Audacity of Hope" royalties... the exact royalty haul was $1.57 million... In addition to royalties, the Obamas disclosed another $225,000 for a book advance for a yet-to-be published kid-friendly version of "Dreams," and an additional $133,334 advance for his 2010 book "Of Thee I Sing: A Letter to My Daughters" (the Obamas intend to donate all after-tax proceeds from "Of Thee I Sing" to the Fisher House Foundation for a scholarship fund for children of soldiers who were killed or disabled). The Obamas also collected between $1,000 and $2,500 in book royalties from the president's late mother's book, "Surviving Against the Odds: Village Industry in Indonesia.""

~  Rough estimate- approximately $3 million in book royalties & advances

"The Obamas report having between $100,000-$250,000 invested for each daughter in the Bright Directions College Savings 529 Plan for the state of Illinois...  (The Obamas) had nothing to list under the Liabilities section of the disclosure form"

~ So you add everything up including about $400k in salary as President and the net worth of the Obamas is at minimum $6 million dollars.

Did you know:  The last US President this nation had who was Not a multi-millionaire was Harry Truman.  After his Presidency ended in early 1953, he and his wife Bess faced financial challenges due to not having any personal savings. His only income was his old army pension: $112.56 per month.

According to Wikipedia, "He (Truman) took out a personal loan from a Missouri bank shortly after leaving office, and then set about establishing another precedent for future former chief executives: a book deal for his memoirs of his time in office...  For the memoirs Truman received only a flat payment of $670,000, and had to pay two-thirds of that in tax; he calculated he got $37,000 after he paid his assistants... In 1958, Congress passed the Former Presidents Act, offering a $25,000 yearly pension to each former president, and it is likely that Truman's financial status played a role in the law's enactment."


At leasr Obama will have a lot of money behind him when he leaves.. whew~

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.