Obamas' net worth as much as US$6.9m, US filing shows

Washington

PRESIDENT Barack Obama and his wife, Michelle, own assets worth US$1.9 million to US$6.9 million, according to financial disclosures. The Obamas, employing a cautious investment strategy while in the White House, hold much of their wealth - at least US$1.25 million - in Treasury notes and bills, according to disclosures last Friday. They also have retirement savings in Vanguard index funds, plus checking accounts at JPMorgan Chase & Co and Northern Trust Corp.

Their wealth, if at the top end of the range, is almost enough to place them in the top one per cent of US households. Their net worth is little changed from last year, when their assets totalled US$2 million to US$7.1 million.

Federal law requires the president, senior administration officials and members of Congress to report their financial holdings annually. The forms compel disclosure in broad ranges and don't cover personal residences and federal government retirement plans. Those limits allow only a partial view of their net worth.

According to tax returns they released earlier this year, the Obamas' adjusted gross income of US$477,383 in 2014 was the lowest for any year since 2004, when Barack Obama was elected to the US Senate. Sales of their books have declined since he was elected president.

They hold US$200,000 to US$400,000 in college savings accounts for their two daughters. The president earlier this year asked Congress to limit the tax break for future plans organised under section 529 of the Internal Revenue Code. He later backed away from the proposal.

The Obamas hold a mortgage on their Chicago house, though they have more than enough in liquid assets to pay off the balance, which is listed as US$500,000 to US$1 million. The home's value isn't included in the tally of assets.

They also haven't chosen to refinance the 30-year mortgage they took out in 2005, which has a 5.625 per cent rate. The average 30-year loan last week carries a 3.85 per cent rate, according to Freddie Mac.

"I would probably benefit from refinancing right now," Mr Obama said in August 2013 when he was promoting initiatives to encourage refinancing mortgages. "I would save some money. When you're President, you have to be a little careful about these transactions, so we haven't refinanced."

Mr Obama, 53, and Mrs Obama, 51, don't have to report the value of their largest asset: his status as a future ex-president. When he leaves office in January 2017, he will be able to make millions of dollars giving speeches and selling books.

Vice-president Joe Biden, 72, and his wife, Jill, 63, reported holdings of US$277,000 to US$957,000. Their largest holding is residential real estate in Wilmington, Delaware, which they must report because they receive rental income. Federal laws don't require public officials to reveal the balances in their federal government retirement accounts, so the filings may understate the wealth of Joe Biden, who has been a US employee since 1973.

The Bidens have several outstanding loans, including a mortgage of as much as US$1 million on their residence. That mortgage, taken out in 2013, has a 3.375 per cent rate, down from the 4.625 per cent rate on their previous mortgage. The Bidens also paid off one home equity line of credit in 2014 and took out another one, at a rate of 2.75 per cent. BLOOMBERG