A little more than a month out of office, former president Barack Obama and former first lady Michelle Obama have signed a book deal with Penguin Random House.
The terms of the agreement were not disclosed; however, The New York Times reported that publishing industry executives said it probably stretched well into eight figures. Executives who followed the bidding process said that opening offers for Obama’s book alone were in the $18 to $20 million range, according to The New York Times.
A significant chunk of Barack Obama’s fortune is thanks to book deals and book royalties. To date, he has written three books: “Dreams From My Father,” “The Audacity of Hope” and “Of Thee I Sing.” According to financial disclosures, he earned more than $10 million from those titles.
CelebrityNetWorth.com reports Barack Obama’s current net worth as $12.2 million and Michelle Obama’s net worth as $11.8 million. According to data collected by Analytics@American, the online business analytics degree from American University, the Obamas could make as much as $242 million post-presidency.
Read on to learn more about how Barack Obama amassed his fortune.
Barack Obama Net Worth: $12.2 Million
Barack Obama earned $400,000 a year throughout his entire eight-year term as President of the United States. On April 15, 2016, Mr. Obama released his 2015 tax returns, which showed that he and his wife 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.
Compare: President Donald Trump’s Net Worth
A Timeline of Barack Obama’s Wealth
How did Barack Obama grow his fortune? Here’s a timeline of his earnings over the years, as chronicled by Business Insider:
- 2004: He 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 former president also had assets in four financial funds worth between $50,000 and $100,000 each.
- 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 off another book advance, plus $378,000 off 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.
- 2006: Obama reported book royalties of just under $150,000, plus $425,000 off an additional book advance. He also acquired publicly-traded assets worth tens of thousands, including funds with Goldman Sachs and Vanguard.
- 2007: Obama earned $3.3 million off 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 U.S. 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.
- 2008: When Obama was elected president, he owned somewhere between $1 million and $5.1 million in U.S. Treasury bills.
- 2009: Obama won the Nobel Peace Prize, which came with a $1.4 million award. He donated it to an assortment of charities.
- 2009-2015: Obama earned $400,000 a year as president and continued to earn book royalties, as well as interest on his investments.
Barack Obama: Life Beyond the Presidency
Barack and Michelle Obama withdrew to Palm Springs, Calif., after witnessing the inauguration of President Donald Trump on Friday, Jan. 20. Barack Obama is now one of five living former presidents.
According to USA Today, Obama is likely to return to his community activist roots. That will likely include work on issues that were important to him during his presidency, such as gun control, immigration, nuclear nonproliferation, race relations and criminal justice reform.
According to the 1958 Former Presidents Act, Obama will receive the salary of a Cabinet secretary for the rest of his life. Currently, that’s $205,700 a year. Among the other perks are health insurance and round-the-clock Secret Service protection until his death.
Related: 15 Crazy Perks of Being President
The costs 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 wife Hillary 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.
American University estimates that the Obamas could make as many as 50 speeches a year once he is out of office, earning “a conservative $200,000 a piece and you’re already close to $200 million before taxes,” the study found.
Either way, Obama will be the first former president in nearly 100 years to remain in Washington, D.C., after leaving office. He and the family will remain in town so his youngest daughter, Sasha, can finish high school.
Their new Washington digs are located in the capitol’s posh Kalorama neighborhood, where first 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.
Barack Obama left the office of the president a very rich man. With this new Penguin Random House book deal, he stands to become even richer.