A few weeks later, after Howe updated the Boss on the situation, FDR himself wrote back.“ I do not want, and cannot afford, to put another red cent into the company in the way of cash … I am a creditor to the tune of nearly $ 16,000, not counting my original investment in the stock of the company.”
By the time FDR got out of the lobster business, he had lost $ 26,000.
That doesn’ t sound like much, but it’ s close to $ 450,000 in 2024 dollars. Clearly the transaction frustrated him, but it wasn’ t enough to really damage his personal finances. After all, he had significant trust funds to fall back on.
The Personal Finances of Presidents
In going through the correspondence and paperwork of FDR’ s direct investing, it’ s hard to believe that the transaction happened just over a century ago. But that is one of the most interesting aspects of the personal finances of the presidents: most of their money problems are just like ours.
Sixty-one years before FDR got caught up in lobsters, another man was assessing his finances before a big move. Abraham Lincoln was leaving Springfield, Illinois, for his inauguration in Washington, DC, on February 11, 1861. He was going to be leasing out his 12-room, Greek Revival – style home on the corner of Eighth and Jackson. It was one of the nicest homes in Springfield, and Lincoln was designating his local insurance representative, Robert Irwin, to handle his bills. He listed his net worth at $ 10,000— or roughly $ 292,000 in today’ s dollars.
It was a far cry from the young lawyer who came to town with two saddlebags of possessions in 1837. Even when he married Mary Todd, they could only afford to lease a room at the Globe Tavern on Adams Street for $ 4 a week. But over the years, he scrimped and saved. He even purchased the home on Jackson Street when it was a one-story cottage, and he slowly renovated it to the stately house it is today. And it helped that Mary’ s family was wealthy and was willing to assist them.
Fast forward to the 1930s, where college student John F. Kennedy was very focused on where every penny went. Kennedy had grown up with money. His father, Joseph Kennedy, had set up trust funds for all of his nine children with a philosophy that they would be able to remain independent.
Letter from Franklin D. Roosevelt( then governor of New York) concerning his personal securities. It is dated six days prior to the October 1929 stock market crash and signed“ FDR.”
Yet despite the wealth to fall back on, Kennedy was never a spender. Even his closest friend, Lem Billings, noted that he was“ very close with a buck.”
Billings recalled that during their summers in college, the Stork Club was the scene in New York. The club would attract the most attractive people. And they held fun events like Balloon Night where balloons were dropped from the ceiling containing $ 100 bills and tickets for free meals or a free bottle of champagne.
As exciting as being at the club was, for Billings, it was a financial stretch for his budget. Yet this never deterred Kennedy. Billings recalled that they would“ order one drink at the table and then Jack and I would excuse ourselves and hurry over to Third Avenue. There was a bar where we would have a few beers and come right back. I only bring this up because Jack Kennedy tried to live within the budgets of his friends.”
FDR, Lincoln and Kennedy are all revered for their leadership. In fact, two of them— FDR and Lincoln( along with George Washington)— usually rank in the top three presidents. But despite their
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