Former US President Donald Trump has failed to make it to the Forbes list of the richest 400 Americans for the first time in 25 years.
Former US President Donald Trump has not found a place in the Forbes list of the richest 400 Americans for the first time in 25 years.
Although Trump is worth $2.5 billion, he fell $400 million short of the cutoff required to make it to this year’s Forbes 400 list of America’s richest people. Donald Trump’s stood at 339 on the ranking last year, but his personal net worth is down $600 million this year.
The 75-year-old real estate mogul’s real estate assets have faltered during the pandemic and this has led to his exit from the list. It may be noted that the former US president’s wealth has shown signs of stagnation during the pandemic, unlike other billionaires who have successfully diversified their businesses.
According to Forbes, Donald Trump had a good opportunity to diversify his fortune around five years ago. After the 2016 presidential election, federal ethics officials reportedly pushed Trump to divest his real estate assets.
It would have allowed him to reinvest the proceeds into broad-based index funds besides allowing him to assume office without any conflict of interest.
However, Donald Trump decided to hold on to his assets estimated at $3.5 billion at the time, after subtracting debt. While Trump would have had to pay a significant amount of capital tax gains on selling his real estate assets at the time, it could have helped him in the long run.
Trump’s refusal to divest his real estate assets, therefore, is likely to have cost him at least $2 billion.