Make Money, Money: President Obama Gives Us a Lesson in Investing

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September 12, 2012 ‐ By Ann Brown

 

Image: AP Photo/Alex Menendez

Business Insider recently took at look at the financial history of Michelle and Barack Obama to explain just how they went from being middle class to multi-millionaires. As Senator, Obama was pulling in $80,287 plus another $32,144 from the University of Chicago Law School where he taught as a lecturer. Add to that Michelle’s salary from the University of Chicago Hospitals, where she was an administrator. (According to FactCheck.org, Michelle went from earning $121,910 in 2004 as an executive director at the hospital to making $316,962 in 2005 as a vice president.)

But the couple began raking in serious dough from three investment assets in 2004 the article saysFirst was the Illinois State Senate Pension Fund, worth between $50,000 and $100,000. Then there were investments in funds with investment management company Vanguard, through which had investments in the Vanguard Wellington Fund (worth between $100,000 and $200,000) and $50,000 to $100,000 invested in the Vanguard Wellesley Fund. Obama’s book deal for The Audacity of Hope, about his famous 2004 Democratic National Convention speech, pushed him into the millionaire bracket.

If the Obamas could invest before they had millions, so can any woman with money smarts.

When many women consider investing, they think you need lots of money to get started. Not so, says small business consultant and “worry-free living” consultant Princess Clark-Wendel, president of Princess Clark Consulting Inc. But don’t jump into investing blind.

Before you invest any cash, do your research about stocks, bonds and mutual funds. And, figure out an investment strategy with a professional money manager, financial consultant or broker. “Find a financial advisor to help you find products that will meet your financial goals,” says Clark-Wendel.

Clark-Wendel sent over three top tips via email.

1. Set financial goals. Spend some time thinking about what you what your money to do for you.  Do you need to pay for your kid’s college education? Are you saving for retirement?

2. Know your time horizon. When will you need the money?

3. Know your financial tolerance for risk. A large gain could result in a large lost.  Could you stomach it?

Call us when you’re rich!

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  • Amy

    Indeed it can be done, setting goals is key. Know what you want and where you want to be, also do not be afraid of sacrifice and hard work. Now at 22, I am almost completely debt free, currently paying off the last of my student loans for my BSN. As of yesterday my credit score is 740 and have a 20k+ savings. I don’t have rich parents and have VERY little knowledge about accounting or finance. When I was 18 I read “The Automatic Millionaire” which I would advise everyone to read as well. Do away with the Gucci bags that you KNOW is out of your budget, focus on obtaining financial freedom. Next stop, ownership. Ladies we can do it!

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