President Barrack Obama is the most powerful man in the world today and his salary is $400,000 per year. By now, he has received $1.6 million for his first term as the President of United States and most of us are expecting that Obama and his wife had a vast of wealth and money. This article will examine the Obama’s wealth and how they build their fortune.
Did you know that the main wealth of President Obama family is in the U.S. Treasury with a worth of $3.4 million from his book royalties? He had $2.4 million in notes and another $1 million in Treasury bills. The Obama’s family has an additional investment with an estimated amount of $625,000 in mutual funds and ETF and $90,000 in a State of Illinois pension fund.
Income and Wealth Sources
President Barrack Obama had three sources of his wealth in his 2004 financial statement, $80,287 from his salary as Illinois senator, $32,144 from his salary as lecturer in the University of Chicago Law School and the third is from his wife’s salary. Michelle Obama’s worked as an administrator at the University of Chicago Hospital.
He had three investments, worth between $50,000 to $100,000 in Illinois State Senate Pension Fund. Obama had investments in the Vanguard Wellington Fund, estimated worth between $100,000 and $200,000. He had another investment worth between $50,000 to $100,000 in Vanguard Wellesley Fund.
The President signed a deal for two nonfiction books and one children’s book where he receives a large amount of book royalties. The biggest source of Obama’s wealth is from his two books “The Audacity of Hope” and “Dreams From My Father”, in 2009 he received $5.7 million, in 2010 he received $1.6 million and in 2011 is between $150,000 to $1.1 million.
Moreover, one of the President Obama’s most valuable assets is a 6,200-square-foot, 6-bathroom, 3-fireplace home in Hyde Park, on the South Side of Chicago. The present value of the property is at $1.65 million.
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Obama’s Net worth
As per the report from Forbes magazine, Obama’s net worth is about $5.7 million only. The summary of Obama’s wealth is shown below;
Cash: $660,000; Mutual funds/ETFs: $625,000; Pension: $90,000; Treasuries: $3.4 million; Real estate: $900,000 and the Total: $5.7 million
Some lessons an employee can learn from President Obama is that, once he got the money, he did not just let it sit in a bank account or spend it all. He invested it and he had money in a number of different assets. He had a passive income apart from his salary as the President of United States. Likewise, he earns from the royalty fee for his three books.
Therefore, Obama became wealthy because of his personal and private investments and other non-salary assets. It is very clear that as a Harvard Law School graduate, he started building his wealth before he became the President of America.