Financial Blog

Net Worth: $202 million

Where he got it:

Romney won a combo M.B.A. and law degree from Harvard and promptly took himself to Wall Street, or at least the Boston version.

He started with the Boston Consulting Group and moved on to Bain & Co., another consulting firm, where he became vice president in 1978.

Six years later he founded Bain Capital, a private equity spin-off that at one time or another had stakes in Bright Horizons, Domino’s Pizza, Staples and The Sports Authority, among others. Romney still receives income from Bain as a retired partner but no longer has any say in operations.

Since 1999, when Romney entered public life, taking over the troubled operations of the 2002 Salt Lake City Olympics, and later as Governor of Massachusetts, he has donated his public service salaries to charity.

He has said he would do the same with his presidential earnings. He doesn’t need the small change.

Where it goes:

Romney and his wife Ann hold about 100 stocks, including Dell, Disney and Target, as well as foreign issues including the Bank of Yokohama and China Mobile, in two blind trusts.

About 43 percent of the Romney portfolio is tied up in private equity investments through Bain Capital Management. About $38 million is in Federal Home Loan Bank bonds that have maturities stretching out to 2016.

Last year Romney’s adviser sold dozens of stocks, some of which he believed would be politically sensitive.

Among them: gaming companies such as Bally and Harrah’s, and companies that do business with Iran, including European oil producers Eni SpA and Total. The sales explain Romney’s ultrahigh 2006 income.

How he could do better:

Romney is the candidate with the most riding on the estate-tax debate. Hugh Smith and Stewart Welch of the Welch Group say that unless Congress changes laws, Romney’s estate could owe at least $90 million as of 2011.

They suggest various ways to cut that bill, including giving all the money to the family foundation after Mitt and Ann both die.

A smaller bite out of the problem: They could give $24,000 tax-free to each of their grandchildren, soon to number 12, every year.

Information is taken from:

Filed under: General by admin No Comments »

Net Worth: $1.3 million

Where he got it:

After Harvard Law, Obama didn’t exactly rake in the big bucks. He led a voter-registration drive and then worked for a Chicago law firm that specializes in civil rights and employment discrimination.

He earned $60,000 as an Illinois state senator, plus another $32,000 as a lecturer in constitutional law at the University of Chicago.

Michelle Obama, however, worked for a while as a big-firm lawyer, leaving to take jobs in the nonprofit sector. She wound up as vice president for community affairs at the University of Chicago Hospitals, a position that paid nearly $317,000 a year.

She resigned in May and also left her post as lead independent director of Tree House Foods, a private-label food business.

According to the Obamas’ tax return (Obama and Sen. Christopher Dodd of Connecticut are the only candidates to release one), their income hit $1.7 million in 2005 and $991,000 in 2006.

The big boost came from his writing, following the stirring speech at the 2004 Democratic Convention that made him famous.

First came a memoir, “Dreams of My Father,” and later “The Audacity of Hope,” which was on the New York Times bestseller list for 30 weeks.

Where it goes:

Excluding Michelle Obama’s retirement plan, whose value needn’t be reported, the couple has about $715,000 in investments. All the money except for two very large checking accounts is in mutual funds.

About $350,000 is divided between Vanguard FTSE Social Index Fund, a socially responsible fund, and Vanguard Wellesley Income, which has a mix of 60 percent bonds and 40 percent stocks.

How he could do better:

The Obamas have about 40 percent of their money in cash - about right for now, says Jason Mirsky of RiskMetrics: “They may need that much cash to tide the family over without Michelle’s income.”

Later, however, the Obamas should ramp up their stock allocation to about 70 percent. With their earning power, they can take more risk, adding small-cap and international funds.

They could also venture into real estate investment trusts or commodities. They should start 529 college savings plans for their two girls.

Information is taken from:

Filed under: General by admin No Comments »

Net Worth: $40.4 million

Where he got it:

McCain wouldn’t exactly be poor were he on his own. As a senator he earns $165,200 a year, and he has a $54,000 Navy pension. And then there’s publishing.

“Faith of My Fathers,” his autobiography, was on bestseller lists for 24 weeks in 1999.

Since then he has produced about a book a year, recently “Hard Call,” about good decisions and how historic figures made them.

In 2006 he took in about $225,000 in royalties, but over the years, income from books has totaled about $1.7 million, all of which he has donated to charity.

He can afford to be generous. His wife Cindy is the chairman of Hensley & Co., the Anheuser-Busch beer distribution business she inherited from her father. As an only child, Cindy is in charge of the family trusts.

Although she only has to report that she has a salary of $1,000 or more, her income from investments in 2006 came to about $3.7 million.

Where it goes:

Except for checking accounts, all the McCain assets are in Cindy’s name or those of their dependent children. Nearly $5 million sits in two generation-skipping trusts.

She receives the income, but the principal passes to her heirs. One holds mostly J.P. Morgan mutual funds and Anheuser-Busch stock, while a second trust has only Arizona municipal bonds.

Other trusts that benefit Cindy contain a variety of stocks, bonds and mutual funds. She also owns shares in two large medical buildings in Phoenix, a guesthouse near the couple’s home in Sedona and an investment property in Coronado Beach, Calif.

Another $6 million in J.P. Morgan funds is held in the name of their four children.

How he could do better:

In the Navy, McCain no doubt learned to keep things tidy, and the couple’s finances are shipshape. They - and Cindy’s father - “have clearly given a great deal of thought to their estate,” says Christopher Cordaro, wealth manager at RegentAtlantic Capital.

Cordaro has just one worry: “Everything except $50,000 is in her name or in trust for her and the children,” he says. “I’d advise the senator to keep Cindy very happy - or have a good prenuptial agreement.”

Information is taken from:

Filed under: General by admin No Comments »

Net Worth: $52.2 million

Where he got it:

Absent 9/11, Rudy Giuliani would have very likely followed the path of other retired mayors, joining a local law firm and reeling in politically connected clients. Instead he’s become a publishing, consulting and speech-making juggernaut.

He received a $3 million advance for “Leadership,” a tome on management that appeared in 2003. He founded Giuliani Partners, a lobbying and security consulting company that paid him an income of $4.1 million in 2006.

He became a named partner at Bracewell & Giuliani, a Houston-based law firm with close ties to the energy industry. That job pays the ex-mayor another $1 million.

But Giuliani’s greatest financial triumph has been his speech-making. In 2006 he took in $11.4 million by delivering 124 talks for up to $200,000 each, one speech every three days.

Where it goes:

Giuliani’s finances partly reflect his somewhat messy personal life. Nearly $100,000 in assets are half owned by Donna Hanover, his second wife, whom he divorced in 2002. (She got a $6.8 million settlement, according to news reports.)

He has since married Judith Nathan, a former pharmaceutical sales rep. With her he shares about $11.6 million in assets, and she has assets of $2.4 million in her own name.

Giuliani’s most significant holding is his 30 percent stake in Giuliani Partners, which has some controversial clients, including the manufacturer of Oxycontin, a powerful painkiller that the government is trying to restrict. (A Giuliani spokesman said the company never discusses engagements.)

Of the couple’s nearly $28 million in investable assets, about 46 percent is in cash and 25 percent in bonds.

How he could do better:

Advisers Hugh Smith and Stewart Welch note that Old Westbury funds, in which Giuliani has invested much of his money, receive only one- to three-star ratings from fund watcher Morningstar, a mediocre record. (Top-ranked funds earn five stars. Not all Westbury funds are ranked.)

They think Giuliani would be better off if he had a manager invest in individual stocks. At his asset level, that would be a cheaper alternative to actively managed mutual funds.

Information is taken from:

Filed under: General by admin No Comments »

Net Worth: $54.7 million

Where he got it:

Most of Edwards’ wealth comes from awards won as a medical malpractice and personal-injury attorney.

After his 2004 run for Vice President, he joined Fortress Investment Group, a $40 billion manager of hedge funds and private equity, as a part-time consultant - for an annual salary of $480,000 (plus profit sharing).

Edwards has since resigned, but Fortress has continued its generosity. Its employees have donated $190,000 in this election cycle, according to the Center for Responsive Politics.

The hedge fund industry is itself looking for continued generosity from the government: the ability of managers to pay taxes on carried interest - that is, profits on investments - as though they were capital gains (taxed at 15 percent) and not ordinary income (taxed at 35 percent).

But Edwards says they won’t get a break from him. He wants the loophole closed and says that would save taxpayers $12 billion.

Where it goes:

Edwards has $24 million - or about 40 percent - of his fortune in alternative investments, mostly Fortress-owned companies or pooled funds. In 2006 he even sold a $4 million stock portfolio he owned with his wife, Elizabeth, to put more into Fortress.

Investments in hedge funds and private equity, however, are risky and illiquid. Hedge fund investors usually have to agree to lock in for a specified number of years.

Such investments may also pay little or no current income - although Edwards in 2006 reaped about $2.1 million from them. The balance of the Edwards’ portfolios is in bonds issued by North Carolina counties.

How he could do better:

No more than 10 percent of the Edwards’ net worth should be in alternative investments, says planner Roth: “Fortress is $40 billion, but that’s a pretty small part of the $51 trillion global market to concentrate in.”

Roth also points out that such investments typically carry stiff management fees - 2 percent of assets and 20 percent of any gain. He suggests that Edwards pare his hedge fund holdings as soon as he can.

If he becomes President, he should put the money in index funds to avoid conflicts of interest.

Information is taken from:

Filed under: General by admin No Comments »

Net Worth: $34.9 million

Where she got it:

When Bill Clinton first ran for President in 1992, Hillary provided most of the couple’s income working for the Rose law firm in Little Rock; he earned only $35,000 a year as governor of Arkansas.

Although she takes in $165,200 a year as a senator, these days Bill is breadwinner-in-chief. His presidential pension is $201,000 a year, and he grabbed a $12 million advance for his 2001 memoir, “My Life.” (Her “Living History” won an advance of $8 million and $7 million in royalties.)

But it’s been Bill’s great gift for gab that has really feathered the Clintons’ nest. He earned an astounding $41 million speaking to groups and corporations in the first six years since he left office. Standard fee: $150,000. The fact that he may be married to the next President can only burnish his star power.

Where it goes:

Until May 2007, the Clintons had cash and a blind trust. When Hillary launched her campaign, however, she (and Mitt Romney) had to “unblind” the trust to comply with Executive Branch rules, so the contents became public. The Clintons’ money was spread among 190 mostly large-cap stocks from A (Abbott Labs) to Y (Yahoo) with a sprinkling of New York State and U.S. bonds.

Jason Mirsky of RiskMetrics assessed the portfolio as aggressive but not foolish. A Black Monday event, he says, would have lost the Clintons about 16.5 percent of their portfolio’s value.

Anxious about potential conflicts, the Clintons sold everything but the U.S. bonds. Allan Roth of Wealth Logic estimates the move cost $500,000 to $1.8 million in taxes. “They have done their fair share to shrink the budget deficit,” he says.

How she could do better:

The Clintons’ cash hoard leaves them exposed to inflation, says Roth. Federal and state taxes put them in the 40 percent bracket, so the after-tax net on a 5 percent yield would be only 3 percent.

The Clintons should invest half their money in the stock market, using broad index funds to avoid conflicts of interest. If they set up a new blind trust, they should confine themselves to 30 to 50 securities.

“With the old portfolio,” says Mirsky, “they had a lot of fragmented positions that didn’t do much but add to their transaction costs.”
Infomation is taken from:

Filed under: General by admin No Comments »

I’ve just come across some interesting information about all candidates. Their financial state might be interesting to the majority of Americans. I’ll post the information in separate posts for your convenience. It’ll be interesting for me to see your comments.

Filed under: General by admin No Comments »

Higher gasoline prices bring big jump in overall prices, larger rise in core prices than forecast.

Prices paid by consumers rose faster in November, lifted by a spike in the price of gasoline, as the government’s key inflation measure came in higher than Wall Street forecasts.

The Consumer Price Index, the key measure of inflation on the retail level, rose 0.8 percent in the month, up from the 0.3 percent rise in October. Economists surveyed by Briefing.com had forecast a 0.6 percent rise in overall prices.

It was the biggest jump in prices since September 2005, when gasoline prices surged higher in the wake of Hurricane Katrina. There was a similar impact of higher gasoline prices this time.

The report showed overall energy prices up 5.7 percent, with gasoline up 9.3 percent. In addition food prices, another recent driver of inflation, were up 0.3 percent.
The Fed’s tightrope act

The so-called core CPI was up 0.3 percent, even though that more closely watched measure strips out the volatile food and energy prices. Economists had forecast a 0.2 percent rise, which was the same increase posted in October. Among the core items seeing prices jump was clothing, where prices jumped 0.8 percent, and medical care, which rose 0.4 percent. It was the largest one-month jump in apparel prices in more than nine years.

Housing also posted a 0.4 percent increase despite widespread reports on home value declines because the report does not measure owner-occupied home prices to estimate this cost. Instead it uses a formula based upon rents.

The core CPI is now up 2.3 percent in the last 12 months, up from a 2.2 percent 12-month gain in the previous report. The Federal Reserve is generally believed to want to see core prices rise 1 to 2 percent a year, so an increase outside of its so-called comfort zone would seem to reduce the chance that the Fed will make further rate cuts soon.

The Fed has cut rates at its last three meetings, citing the risk of an economic slowdown created by problems in the housing and credit markets. But the last cut on Tuesday was a quarter percentage point, when many investors were expecting a half-point cut, and stocks went into a sharp decline after that announcement. U.S. stocks opened sharply lower Friday on the latest inflation reading.

The chance of another quarter-percentage point interest rate cut in January, as predicted by the fed funds futures, fell to 84 percent after the CPI report, from 100 percent before the report.

“No wonder Feddies cite inflation risks,” said economist Robert Brusca, citing the statement the central bank released when it trimmed interest rates Tuesday. “Still the economy is weak so we’ll see what they do.”

Gus Faucher, director of macroeconomics for Moody’s Economy.com, said he believes the price jump in Friday’s report is not something the Fed needs to worry about, given the the impact volatile oil prices had.

“I don’t expect to see much pass through to core CPI,” he said. “With economy remaining soft, I don’t think we have to worry about businesses raising prices much.”

But Rich Yamarone, director of economic research at Argus Research, said there is much more growth and underlying core inflation than has been assumed by many economists. He said many companies in consumer products, food and air travel have been announcing price increases due to a combination of higher costs and continuing high demand for their product.

“All those price hike announcements we saw in the last three, six or nine months are now coming home to roost,” he said. “These reports are not coming in on softer side, they’re all coming out much stronger than expectations. Consumers are continuing to spend money. It should diminish the chance of a recession, not increase it.”

Information is taken from:

Filed under: General by admin No Comments »

American drivers should be ready to pay 3$ per gallon of Regular gas. There is no tendency for this price to go down. A barrel of crude oil costs about 90$ now and is expected to be 100$ soon enough. With such an expensive oil, seasonal waving of the price will not be noticeable, American economists say.

It’s a normal state of affairs when gas prices rise during summer periods and slightly fall in winter. This winter is not an exception but it would be naïve to think that the price will be lower than 3$.

However, some analytics believe that crude oil will sank 10-15% to 70-75$ per gallon. With all this, American drivers shouldn’t expect to see lower numbers on clapboard signs at filling stations.

It may be interesting for you to know the price of gasoline in other countries.
The lowest price in the world is set in Turkmenistan, one gallon of regular gas costs about 9 cents; Venezuela – 14 cents; Iran – 40 cents, Saudi Arabia – 72 cents; China – 3.13$; Russian Federation – 3.63$; Japan – 4.94$; Germany – 7$; Turkey – 8.5$.

Looking at these numbers I’m starting to believe that average American is well protected from gas overpayments in comparison with other countries, especially when average income is taken into consideration.

Filed under: General by admin No Comments »

If you are reading this post, it means that you has entered a new Financial Blog on Nowgetloan.com. Administration of the resource and personally I welcome you here. We will do our best to provide you with latest financial news and give you the best selected offers in the Net in order to save and increase your financial resources. Leave your comments and posts on any financial topic. Our consultants and I will try to answer all your questions. Let us be a source of useful information to each other and exchange opinions in order to get extra benefits and use our abilities effectively. Hope this blog will become one of your favourites.

Filed under: General by admin No Comments »