{"id":265,"date":"2012-10-24T05:48:40","date_gmt":"2012-10-24T05:48:40","guid":{"rendered":"http:\/\/www.apisbull.com\/blog\/?p=265"},"modified":"2012-10-24T05:48:40","modified_gmt":"2012-10-24T05:48:40","slug":"what-you-may-not-know-about-obamas-millions","status":"publish","type":"post","link":"https:\/\/www.apisbull.com\/blog\/?p=265","title":{"rendered":"What You May Not Know About Obama’s Millions"},"content":{"rendered":"
The tax forms of U.S. politicians are a matter of public record. So last month we decided to take a peek at President Obama\u2019s 1040 tax return.<\/span><\/div>\n

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What we unearthed was enlightening and could help you discover the same key to success and road to riches.\u00a0<\/span><\/div>\n

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We\u2019ll outline how Obama went from a $32,000 dollar per year wage earner …<\/span><\/div>\n

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…to a multi-millionaire within just a few short years.<\/span><\/div>\n

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(it was NOT just from his salary as Senator or President)<\/span><\/div>\n

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The awesome thing for you is that anyone with a desire (and not allergic to a little hard work) can put these same principals into practice and reap a harvest of rewards.<\/span><\/div>\n

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You may not become a millionaire (at least not right away), but you can easily and significantly boost your current income by a magnitude of two or three.<\/span><\/div>\n

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Even more if you want it badly enough.<\/strong><\/div>\n

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<\/div>\n
In the Beginning…<\/div>\n<\/div>\n

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Before you can tell how far someone has come, you need to know where they started.<\/span><\/div>\n

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For Barack Obama, the picture is fuzzy before 1998 when he became a state senator for Illinois.<\/span><\/div>\n

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We do know that he had a $32,144 salary from the University of Chicago Law School, where Obama taught as a lecturer while he was in the statehouse.<\/span><\/div>\n

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Before that he had his law practice.<\/span><\/div>\n

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His wife Michelle also worked as an administrator at University of Chicago Hospitals.<\/span><\/div>\n

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As a two-income \u201cprofessional\u201d family, they were able to live comfortably.\u00a0<\/span><\/div>\n

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Barack also wrote a book, published in 1995, called\u00a0<\/span>\u201cDreams From My Father.\u201d\u00a0<\/span><\/em><\/div>\n

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The book didn\u2019t make him rich, but royalties from the sales allowed him to stash away a little over $200,000 in a mutual fund.<\/span><\/div>\n

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That provided a nice little retirement windfall. But…<\/span><\/div>\n

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Looking at how he invested, it was clear (and still is) that…<\/span><\/div>\n

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Obama Is Not Much of an Investor<\/strong><\/div>\n<\/div>\n

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In fact, all of his investments we could track down are two types:<\/span><\/div>\n

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\u2022 Mutual funds or\u00a0<\/span><\/div>\n
\u2022 US Treasuries<\/span><\/div>\n

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Obama\u2019s first investment was $150,000 into a Vanguard \u201cbalanced\u201d mutual fund (60% stocks, 40% bonds).<\/span><\/div>\n

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His second investment was $75,000 in bond-heavy mutual fund.<\/span><\/div>\n

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These are both from early royalties on his first book (before he became famous).<\/span><\/div>\n

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His later investments have almost all been in US Treasuries (more on that later), or in other mutual funds (especially for his daughters).<\/span><\/div>\n

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A few of these investments have done okay, but most have not increased his wealth.\u00a0<\/span><\/div>\n

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At best, these \u201csafe investments\u201d have preserved Obama\u2019s fortune. At worst, he\u2019s lost 5-10% of the original value (we\u2019ll show you where we get that figure in a minute).<\/span><\/div>\n

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So the question is…<\/span><\/div>\n

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How Did Obama End Up With a\u00a0$12 Million Dollar Net Worth Today?<\/strong><\/div>\n<\/div>\n<\/div>\n

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That\u2019s right. President Barack Obama is worth an estimated $11.8 million.<\/span><\/div>\n

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Not too shabby for a guy who started in the middle-class. So, how\u2019d he get there?<\/span><\/div>\n

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Was it his salary?<\/span><\/div>\n

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Let\u2019s take a look:<\/span><\/div>\n

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From 2005 \u2013 2008 Obama collected about $180k per year as a U.S. Senator. Total=$720K.<\/span><\/div>\n

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From 2009- 2012 Obama has collected a $400k annual salary as President of the United States. Total=$1.6M<\/span><\/div>\n

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Obama\u2019s grand total from Federal government salary during the last 8 years=$2,320,000.<\/span><\/div>\n

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Now that\u2019s not a bad chunk of change!<\/span><\/div>\n

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But…<\/span><\/div>\n

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It still leaves almost $10 million from other sources.<\/span><\/div>\n

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The answer lies nestled 38 pages deep within his 2010 tax return (the most recent one we analyzed).<\/span><\/div>\n

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The president has two items listed as \u201cOther Income\u201d on \u201cStatement 8\u201d for Schedule C of his tax return (Schedule C is where individuals in the United States report \u201cbusiness income.\u201d).<\/span><\/div>\n
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Most people will recognize \u201cRandom House\u201d as a book publisher.\u00a0<\/span><\/div>\n

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But what about Dystel & Goderich?<\/span><\/div>\n

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A quick internet search revealed that they are a literary agent firm, and on their website they provide a list of their current \u201cclients.\u201d\u00a0<\/span><\/div>\n

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Each author is listed alphabetically with a brief biography.\u00a0<\/span><\/div>\n

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Under the O\u2019s, here\u2019s what we found:<\/span><\/div>\n

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BARACK OBAMA is the 44th President of the United States. He is also the author of the New York Times bestseller DREAMS FROM MY FATHER: A STORY OF RACE AND INHERITANCE.<\/span><\/div>\n

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So, Dystel & Goderich is Obama\u2019s literary agent.<\/span><\/div>\n

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The $1.1 million Obama received from them in 2010 was from worldwide book royalties.<\/span><\/div>\n

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In total, Obama\u2019s 2010 tax return showed $1.97 million of income ($1.57 royalties + $400k presidential salary).<\/span><\/div>\n

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He only paid taxes on $1.71 million because he wrote off some losses on his investments, including a <$196,000> loss on the sale of some of his US Treasuries (we told you his investment savvy wasn\u2019t so great).<\/span><\/div>\n

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One and a half million dollars in royalties isn\u2019t bad, but the previous year was even better!<\/span><\/div>\n

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His tax return from the previous year revealed that …<\/span><\/div>\n

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Obama Made $5+ Million in\u00a0Book Royalties in 2009!<\/strong><\/div>\n<\/div>\n<\/div>\n

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This is the real secret to Obama\u2019s wealth.<\/span><\/div>\n

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His historic run for the presidency helped him sell millions of copies of his two books.<\/span><\/div>\n

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And the one event that vaulted Obama into the limelight to be able to do all this?<\/span><\/div>\n

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It was his keynote address at the 2004 Democratic National Convention (as a candidate for Senate).<\/span><\/div>\n

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The speech was titled,\u00a0“The Audacity of Hope<\/strong>.”<\/em>\u00a0It was a slam-dunk that propelled Obama’s popularity upwards.<\/span><\/div>\n

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Random House quickly seized the opportunity and signed Obama to a number of book deals. One of those deals was for\u201cThe Audacity of Hope<\/strong>“<\/em>\u00a0(an expanded version of his 2004 speech).<\/span><\/div>\n

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In January of 2005, Obama inked the deal with Random house for his second book.<\/span><\/div>\n

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Here are the terms of that book deal (The Audacity of Hope<\/em><\/strong>) that made Obama phenomenally rich:<\/span><\/div>\n
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  • Obama received a $1.9 million advance upon signing, then<\/span><\/li>\n
  • 15 percent of the list price for hardcover copies.\u00a0<\/span><\/li>\n
  • 7 percent of the list price for the trade paperback version,\u00a0<\/span><\/li>\n
  • 8 percent of list price for the first 150,000 issues sold of the mass market paperback, then\u00a0<\/span><\/li>\n
  • 10 percent of the list price thereafter.<\/span>
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    He also agreed to a 10 percent cut on all audio book sales (he later won Grammy for his recording)!<\/span><\/div>\n

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    To top it off, Random House decided to republish his 1995 book, “Dreams From My Father<\/strong>.<\/em>”\u00a0<\/span><\/div>\n

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    That first book (that had originally made Obama only a couple hundred thousand dollars) has now stuffed more than a couple million extra dollars in Obama\u2019s pockets.<\/span><\/div>\n

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    Financial experts all agree, however, that…<\/span><\/div>\n

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    Obama\u2019s Real Fortune\u00a0Is Yet To Come<\/strong><\/div>\n<\/div>\n<\/div>\n

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    At only 51 years old, Barack Obama has a long career ahead of him to capitalize on his fame.<\/span><\/div>\n

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    Almost all past presidents have raked in the dough during their post-White House years.<\/span><\/div>\n

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    Former president Ronald Reagan called it the \u201cMashed Potato Circuit.\u201d\u00a0<\/span><\/div>\n

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    It\u2019s when former presidents tour around the world and speak in front of pay-per-plate dinner crowds … and get compensated handsomely for their mealtime talks.<\/span><\/div>\n

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    No matter what Obama leaves as his legacy as the 44th US President, he\u2019ll likely be able earn tens of millions of dollars EACH YEAR giving speeches.\u00a0<\/span><\/div>\n

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    Probably for at least \u00a0another 10 to 20 years.<\/span><\/div>\n

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    So…<\/span><\/div>\n

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    …even though many characterize Obama\u2019s politics as socialistic…<\/span><\/div>\n

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    the fact remains that…<\/span><\/div>\n

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    Obama Is an Opportunistic Capitalist<\/strong><\/div>\n<\/div>\n

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    And we mean that as a compliment.\u00a0<\/span><\/div>\n

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    Not that we agree with all his politics (we don\u2019t).<\/span><\/div>\n

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    But capitalism means recognizing advantages and opportunities as they arise, and seizing those opportunities before they slip away.\u00a0<\/span><\/div>\n

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    Capitalizing on them.<\/span><\/div>\n

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    Which is one of the…<\/span><\/div>\n

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    Two Great Lessons YOU\u00a0Can Learn from Obama<\/strong><\/div>\n<\/div>\n<\/div>\n

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    After all, you\u2019re not reading this just to get the dirty, low down secrets on the president, right?<\/span><\/div>\n

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    You want to know how it can help YOU.<\/span><\/div>\n

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    And that\u2019s what\u2019s great here.<\/span><\/div>\n

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    You see, it\u2019s not that you have to become president of the USA, or write a book to become rich and successful.<\/span><\/div>\n

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    The real moral of this story is this:\u00a0<\/span><\/div>\n

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    1. Sweat equity can pay big dividends later<\/span><\/div>\n
    2. You need passive income to take you to the next level<\/span><\/div>\n

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    Obama\u2019s first book was hardly prolific. At the time, he might have even considered it a failure.\u00a0<\/span><\/div>\n

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    But the \u201csweat equity\u201d he put into it paid off (big time) a dozen years later when he became famous.<\/span><\/div>\n

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    And the passive income from his books? Well, even with the posh salary of a US Senator and president, Obama\u2019s passive royalty income has exceeded his \u201cactive\u201d income more than five-fold.<\/span><\/div>\n

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    Passive income comes in many forms. It can be dividends…bond interest…rent payments…royalties.<\/span><\/div>\n

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    Whatever you\u2019re able to capitalized on, that\u2019s what you want to pursue with all your heart…whenever the opportunity presents itself.<\/span><\/div>\n

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    He hasn\u2019t had to lift a finger to make those profits.<\/span><\/div>\n

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    And when you add \u201cpassive \u201cprofits like this to your \u201cactive\u201d income, well, the sky\u2019s the limit.<\/span><\/div>\n

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    If you\u2019d like to stoke the fires of your wealth-building furnace…<\/span><\/div>\n

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    You\u2019ve already seen the webinar. You know what\u2019s coming with our economy (and the massive wealth transfer about to take place).<\/span><\/div>\n

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    Now it\u2019s time to prepare yourself. To finally take control. To set yourself up for the easiest passive income you\u2019ll ever find.\u00a0<\/span><\/div>\n

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    Don\u2019t put this off one second longer…<\/span><\/div>\n<\/div>\n
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