Trump not in Forbes 400
Former President Donald Trump is not on the Forbes 400 for the first time in 25 years. This is due to:
- Decreased net worth
- Increase in crypto
- Decrease in real estate
Trump’s misfortunes started when he was elected president and was advised to dissociate his real estate possessions. By doing this, he could have spread out his investment to reduce conflict of interest. While it is not illegal for him to run the country and his business, it looks superficial to do so. Trump thought that by keeping his real estate investments, he would save from paying taxes on capital gains. This could have been a missed investment in his situation.
Had Trump sold his assets in real estate, he could have reinvested in crypto or another index fund tracking the S&P 500. This would have permitted him to run the country without having to worry much about his long-term fortune. However, he and his team showed no interest in even signing a certificate of divestiture that could have saved him from paying tax on his capital gains. Reinvesting the money into an index fund tracker would have brought him into the top 140 of the wealthiest people. Had he done this, he would have been worth close to $7 billion dollars.
With the rise of the Covid-19 pandemic, real estate took a great loss. The large properties in big cities have suffered and lower Trump’s wealth. Real estate is also known to be riskier in the stock market. It takes a lot of time and focus, something Trump did not have time for during his presidency. The pandemic caused more strain on him trying to keep the country running during unpredictable times. With the cost of materials rising, people were less likely to purchase a new property or real estate hurting the real estate market.
Although this is the first time in almost three decades that Trump is not on the Forbes 400, he is still worth billions.