Every year, the White Home launches financial disclosures for the President and the First Lady. CNN Cash reports on exactly how President Obama handles his cash, and it can offer you insight into exactly how you could enhance also.
Treasuries a Huge Part of the Obamas’ Wealth
According to the monetary disclosure, reports CNN, Head of state Obama purchases Treasuries with most of his family’s wealth. U.S. Treasury securities are a primary financial investment, with between $1 million and $5 million in Treasuries. While this works well for those with the resources, Treasuries are not a good way to develop wealth in time, given that the yields are fairly low.
As you might expect, the Obamas plan to see to it their kids can attend college. There’s between $200,000 and $400,000 in 529 strategies.
One thing I did discover fascinating is that the mortgage rate on the Obamas’ house in Chicago is 5.6 percent. I am paying less than 4.0 percent on my loan. While rates have risen given that I refinanced, Head of state Obama can still do much better than his existing rate.
Finally, CNN Money explains that the income from Head of state Obama’s books has actually been dropping. In 2010, aristocracies from Obama’s books generated more than $2 million, dwarfing the $400,000 he earns as Head of state. Now, however, the royalties are lower, at $165,000 for 2013. It’s a good idea to do exactly what you can with your finances when you’ve the opportunity, and the Obamas have actually enough stored in Treasuries that they must be getting a suitable earnings from that – even if they are not in the “wealth building” with stocks.