LAHORE: Busy packing up to leave the White House on January 20, US President Barack Obama would still leave office a fairly rich man, though not as wealthy as his successor Donald Trump.
A widely-quoted American website “GOBankingRates.com”, dedicated to connecting readers with the best interest rates collected from thousands of banks, credit unions and lenders, has recently carried an article that statistically compared the respective wallets of both Obama and Trump.
Edited by renowned financial experts appearing on various media houses like the Fox News, The Huffington Post, Style Magazine and ABC News radio etc, website GOBankingRates.com has also quoted prestigious media outlets like the CNN, Forbes and The New York Times while preparing this article under review, besides citing wealth evaluations of known websites like the “CelebrityNetWorth.com” etc.
Following are some excerpts from this article; Obama’s net worth: According to a frequently visited Chicago-based website “CelebrityNetWorth.com,” which lists a celebrity’s name, biography, salary and estimates of net worth by “applying a proprietary algorithm” method based on publicly available information and using financial analysts to review such results, Obama has a net worth of $12.2 million, while his wife Michelle Obama is not far behind with a net worth of $11.8 million.
Based on a recent study by American University in Washington, DC, the Obamas could stand to make as much as $242 million once leaving the White House. Trump’s net worth: Prestigious Forbes magazine has put Trump’s net worth at $4.5 billion. He is no 324 on the worldwide list of billionaires and no 113 in the United States.
Early in his campaign, Trump had said he was worth in excess of $10 billion, and he had reiterated that claim on May 17 when he had gone to submit an updated financial disclosure to the US Federal Election Commission.
Here is a look at President Barack Obama as he turns over the presidency, his net worth and plans for the future. For his day job as president, Barack Obama earned $400,000 a year throughout his entire eight-year term — a salary that incoming president Trump has vowed to forgo. The president also receives a $50,000 annual expense account, a $100,000 non-taxable travel account and a $19,000 entertainment budget.
On April 15, 2016, President Obama released his 2015 tax returns which showed that he and First Lady Michelle Obama filed jointly and reported an adjusted gross income of $436,065. They paid $81,472 in taxes according to their 18.7 percent tax rate. They also donated a total of $64,066 to more than 30 charities.
The Business Insider, a German-owned American news website with 70 million unique monthly visitors, which also operates international editions in Australia, India, Malaysia, Indonesia, Singapore, China, Italy and the UK, has chronicled the following timeline of Barack Obama’s wealth:
Year 2004: Obama earned a salary of $80,287 from the Illinois State Senate and $32,144 from the University of Chicago Law School, where he taught. The president also had assets in four financial funds worth between $50,000 and $100,000 each.
Year 2005: Obama signed a multi-book deal with Random House and received a $1.9 million advance for “The Audacity of Hope”, plus royalties, following his appearance at the 2004 Democratic National Convention. Also that year he earned just over $847,000 of another book advance, plus $378,000 of additional book royalties. Meanwhile, his investments grew with the addition of a Nuveen Floating Rate Income Fund valued between $50,000 and $100,000. He also reported deposit accounts valued between $150,000 and $350,000.
Year 2006: Obama reported book royalties of just under $150,000, plus $425,000 of an additional book advance. He also acquired publicly-traded assets worth tens of thousands, including funds with Goldman Sachs and Vanguard.
Year 2007: Obama earned $3.3 million book royalties from Random House and $816,000 from Dystel & Goderich Literary Management. He acquired a Northern Municipal Money Market Fund valued between $1 million and $5 million, in addition to the US Treasury notes valued between $500,000 and $1 million. For his daughters, he invested in two 529 college savings plans valued around $200,000 each.
Year 2008: When Obama was elected as president, he owned somewhere between $1 million and $5.1 million in the US treasury bills.
Year 2009: Obama won the Nobel Peace Prize, which came with a $1.4 million award. He donated it to an assortment of charities.
Years 2009 to 2015: Obama earned $400,000 a year as president and continued to earn book royalties, as well as interest on his investments.
Barack Obama’s life beyond the presidency:
According to the 1958 Former Presidents Act, Obama will receive the salary of a Cabinet secretary for the rest of his life. Currently, that is $205,700 a year. Among the other perks are health insurance and round-the-clock Secret Service protection until his death. The cost of Secret Service protection are not made public, but Obama will also receive funds for an office, staff and related expenses, which George W. Bush took advantage of to the tune of $1.1 million in 2015.
Many presidents establish foundations and enjoy lucrative second careers as in-demand speakers and authors. Although there is no hard data on Obama’s previous speaking fees, past presidents such as George W. Bush have earned between $100,000 and $175,000 per engagement after they left the White House.
According to CNN, former president Bill Clinton and his wife Hillary had earned an average of $210,795 per speech in the 15 or so years since he left office. That totals approximately $153 million for 729 paid speaking engagements.
The American University in Washington DC has estimated that the Obamas could make as many as 50 speeches a year once he is out of office, earning a conservative $200,000 apiece, hence coming close to the $200 million mark before taxes.
According to The New York Times, Obama has already proven to be an accomplished and popular author. Following the presidency, he could earn about $30 million for his memoir, while Michelle Obama could garner an estimated $10 million for hers.
Around Washington DC’s posh Kalorama neighbourhood, where Trump’s daughter Ivanka Trump also owns a home, the Obamas have leased an 8,200-square-foot, nine-bedroom mansion that was built in 1928. The spacious home last sold for $5.3 million in 2014 and is estimated to be worth $6.3 million today.
Donald Trump’s inherited wealth and further development: Born into a wealthy family, Trump had inherited about $40 million from his late father, real estate developer Fred Trump.
According to website CelebrityNetWorth.com, which tracks celebrity earnings, Trump became head of what would later be known as The Trump Organisation in 1971.
Donald Trump’s earnings and title have since helped him develop over 500 companies. The business mogul has his stake in casinos, skyscrapers, television shows, golf courses, books, merchandise and more.
Donald Trump’s businesses: In the 1970s, Trump had inked a deal with Hyatt, in the city of New York and the unprofitable Commodore Hotel beside the Grand Central Station, earning the right to renovate and rebrand the ailing hotel into the Grand Hyatt. That hotel became an instant success, making Trump one of the best-known real estate developers in the area.
In 1984, Trump completed construction on the 68-story Trump Tower, the home of The Trump Organisation. That building includes a 60-foot waterfall and, on opening day, had five levels of retail stores and restaurants known as a New York staple.
Trump has owned a number of successful businesses and properties among them Trump Place, a housing development project with 5,700 apartments across 18 buildings.
The Trump International Hotel & Tower Chicago has a hotel, condos and numerous restaurants and shops. Wollman Rink, a Central Park staple that sees more than five million visitors each year, is also owned by Trump.
Donald Trump’s failed businesses: While Trump has major business wins to his name, he has suffered losses too.
In 1988, Trump had spent $365 million on a fleet of Boeing 727s, plus landing facilities in Washington, DC, New York City and Boston. He also bought the right to paint his name on a plane. Unfortunately, his attempt to build a luxury flying experience under the Trump Shuttle name failed — and the company was decommissioned.
In 1990, the banks that backed his investments provided him with a $65 million bailout in new loans and credit, reported Time. That bailout failed, leaving Trump nearly $4 billion in debt nine months later. That same year, his famous Taj Mahal casino in Atlanta City had filed for bankruptcy.
Trump Hotels & Casino Resorts went bankrupt in 2004. In 2009, the same company — now called Trump Entertainment Resorts — filed for bankruptcy again.
One of Trump’s highest-profile business failures is Trump University. The unaccredited online college was launched in 2005 and closed down in 2010. Three Trump University lawsuits plague the Republican nominee’s campaign. Those lawsuits allege Trump University was a scam that cost students tens of thousands of dollars.
Donald Trump’s lifestyle:
Trump and wife Melania Trump live in a three-floor penthouse in Trump Tower in New York. The luxuries they enjoy include an indoor fountain and a door encrusted with diamonds and gold.
Among his other properties is the private club Mar-a-Lago, which sits on 17 acres of valuable South Florida land. He bought the estate — which boasts 58 bedrooms, 33 bathrooms, 12 fireplaces and three bomb shelters — for the bargain price of $10 million in 1985. Today, it is a luxury club worth as much as $300 million.
He shuttles between campaign stops in his $100 million Boeing 757 adorned with gold seat belts. His fleet of luxury vehicles include a Rolls Royce, an electric blue 1997 Lamborghini Diablo and a Mercedes-Benz SLR McLaren.
