Joe Biden may step into the first phase of his retirement, and his journey is an example of how phased retirement can come with a wide range of goals. For people like Biden, this is a transition that will allow more time for passion projects or traveling. This is going to be the way out of a stressful career while still maintaining the desire to leverage their vast knowledge and gain experience. This is going to provide the flexibility of choosing when to work and how much.

Partial retirement can ease the emotional transition, as retirement planning involves key aspects such as time and money. Biden, like many of us, will most likely give enough importance to the topic of how to spend this new phase of his life and will manage to navigate the emotional aspects of retirement.

Career-oriented individuals who often deal with stress in their lives see retirement as a major life change. Being needed at work gives them a strong sense of purpose, and for them to maintain their happiness and fulfillment in their retirement years, it is very important to find structure and intellectual stimulation.

A study conducted by Fidelity showed that most people return to work after retiring for these reasons: 31% decide to come back out of boredom, while 36% claimed they lost their sense of purpose, and they needed one. So, Biden would probably opt for a phased approach to his retirement to maintain his sense of purpose and engagement.

Let’s see how his retirement is going to be different based on financial factors

While America’s economy is thriving, meaning the stock market has risen 15% over the past 6 months and 24% since last year, many people don’t feel so wealthy. There are several issues, such as stagnant HME values, high interest rates, persistent inflation, and flat wages. Well, President Joe Biden is blamed by many for these situations, yet he also feels the impact. His estimated net worth remains at $10 million.

Real estate is an important part of what Biden decided to invest his money in, so two-thirds of his wealth is tied to it. There are two houses he owns: one mansion in Wilmington that is around 4,800 square feet, and it is used as a summer house in Rehoboth Beach. This is a house he bought for $2.7 million in 2017, and its value surged to $4.5 million during the pandemic because of city dwellers who sought out nature. However, the house value stagnated because interest rates have cooled the housing market in the past year.

When it comes to salary, this one is also unchanged, meaning $400,000 annually, as this is the salary since George W. Bush. Of course, inflation decreased the purchasing power of his paycheck, and the equivalent of what Bush earned back in the day is now $717,000.

Biden made a move in 2022 by taking out a $250,000 line of credit and drawing over $100,000 from it by the end of 2023. Given the variable interest rate of 1.99%, Biden’s borrowing costs rise with interest rates.

With these challenges, Biden is doing great, considering his modest beginnings, which he always likes to talk about, such as growing up in a middle-class family, in a house with three bedrooms and four kids, and with their grandfather living with them.

His father managed to find success in the car sales industry, and Biden had the chance to attend the University of Delaware and law school at Syracuse University. He returned to Delaware after graduating, joining a law firm, becoming a public defender, and working as a defense attorney in civil litigation until 1971, when he decided to start his own practice.

When it comes to his financial stability, he has always been closely linked to real estate. He started to buy property in 1969 and took out additional loans. He owned his first house to be rented in Newark, Delaware. Then he got more and more properties in his portfolio while he was still working as an attorney, a fact that kept him afloat and in an increasing position financially.

Watching Joe Biden’s financial pattern, we see a retirement that could be characterized by strategic leveraging of real estate assets. This could be his way of continuing income from booked deals or spoken engagements to focus on keeping and growing his wealth by diversifying his investment portfolio.

He can manage his finances this way: Real Estate; Speaking and Writing; Pensions, and Annuities

Real estate investments represent for Biden, both an investment source and a source of liquidity. He should continue to invest in properties and leverage them when necessary if he needs to access cash or generate income. For example, the beach house we talked about earlier, along with other properties, could become a source of rental income, or it can be sold for additional liquidity if needed.

Speaking and Writing Financial Gains: A specific thing about Biden’s retirement may be the fact that, after his presidency, he may get a lot of speaking opportunities and book deals that can generate substantial income. This happened during his post-vice presidency time, and he earned $11.1 million in one year for these types of activities.

When it comes to Pensions and Annuities, Biden will get a $1 million pension and, for his wife, an additional $250,000. These consistent income streams will ensure financial stability. Additional regular income may come from annuities or any other retirement account. Moreover, if Joe Biden decides to remain active in public life, this will enhance his financial earnings through media, consulting roles, or even advisory positions.

Taking into consideration the pattern of borrowing against assets, this could be another financial management strategy he could use to continue and use lines of credit if needed. His post-presidential income has for sure increased, and he may rely less on borrowing and be more focused on his investments and earnings. Because of this behavior, Biden is accustomed to managing significant debt, and his next approach will probably be careful financial planning to maintain his lifestyle and cover any liabilities.

To summarize, Joe Biden’s retirement will most likely be financially secured by all the various income sources he managed to get over the years, including substantial post-presidency earnings and steady pension income. Studying his history, it’s clear that he is going to continue to strategically manage and grow his assets and remain as active as possible in the public eye, along with engaging in philanthropic actions. He may focus on philanthropy and support causes he cares about as a purpose for his retirement years. His influence and wealth will be just fine for establishing foundations and making a lasting impact.

Joe Biden’s Hobbies and Interests

Every person has a different view about how they want to spend their golden years to be the most fulfilled, and for sure, every ideal image looks different for everybody. Let’s see what Joe Biden’s free days may look like based on what we know about him until now.

He is known to be an avid cyclist, and he frequently makes time to ride his bike. This hobby will provide him with enough activity and a great time to enjoy the outdoors. A very important thing for the President is his family. He never misses a chance to talk about how joyful it is to spend time with his children and grandchildren, so in his retirement, he will probably prioritize family activities.

Another hobby he has is reading and writing. As we mentioned, the post-presidency time may involve him authoring more books, reflecting on his political career and personal life, or even exploring other topics of interest. Joe Biden has a real passion for public speaking, and he can also spend time giving lectures at universities and teaching courses on public service and politics.

He has a long history of volunteering, and this may be a great moment when he has a lot of time to engage in service projects and support charitable organizations. Another thing he might choose, considering his extensive career in public service, is to take the opportunity to travel more leisurely, to explore new places and cultures, and to really have time to connect with them.

Overall, the way he manages his finances and his hobbies and interests indicate a great retirement for Biden that will keep him active and happy, with a balance of intellectual pursuits, physical activities, and time spent with loved ones.

If you’re interested in finding out more about his life and his perspectives, we recommend the book Joe Biden: The Life, the Presidency, and What Matters Now by Evan Osnos.

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