Donald Trump’s Net Worth And Net Worth Composition

What Is Donald Trump's Net Worth And Net Worth Composition
Official portrait of President Donald J. Trump, Friday, October 6, 2017. (Official White House photo by Shealah Craighead)

Former President Donald Trump is still a very rich man. But what is Donald Trump's net worth exactly? As of May 1, 2020, Donald Trump's net worth is roughly $6 billion.

This post will analyze how I came to this calculation.

Thanks to Michael Cohen, the president's former personal attorney, we find out more about Donald Trump's net worth details.

Michael Cohen testified before the House Oversight Committee on Wednesday, February 27, 2019 and provided the committee with Donald Trump's financial statements for 2011, 2012 and 2013.

Based on the documents provided, Donald Trump's net worth as of 2013 was roughly $8.2 billion, a significant 89% jump from an estimated net worth of $4.6 billion in 2012.

Donald Trump's 2013 net worth consisted of roughly $9.2 billion in assets and $500 million in liabilities. But Donald Trump's Core Net Worth is closer to $4.2 billion as of 2013, as I'll explain below.

See Donald Trump's comprehensive net worth break down in the chart below provided by Michael Cohen and the House Oversight Committee.

Donald Trump's Net Worth Composition

What Is Donald Trump's Net Worth And Net Worth Composition?

Donald Trump's $9.2 billion in assets consist of the following:

$4 billion: Brand Value

$2 billion: Real estate assets

$1.5 billion: Cash / Securities

$500 million: Club properties

$600 million: Miss Universe

$600 million: Other Assets

We now know why there was a 89% YoY jump in Donald Trump's net worth in 2013. $4 billion in Brand Value is a completely subjective number. Michael Cohen mentioned that Donald Trump inflated his net worth in an attempt to borrow money to put a bid on the Buffalo Bills.

Donald Trump Inflated His Net Worth

“It was my experience that Mr. Trump inflated his total assets when it served his purposes, such as trying to be listed among the wealthiest people in Forbes,” Cohen said in his testimony, “and deflated his assets to reduce his real estate taxes.”

Since Donald Trump took office as President in 2016, some would say his brand value has been significantly hit. Many of his properties have been stripped of its name because the residents don't want to be associated with a divisive President.

One could easily assign a $0 to Donald Trump's brand value in 2019, just like how there was zero brand value assigned to Donald Trump's net worth in 2012.

Therefore, we can assign a Core Net Worth of $4.2 billion for Donald Trump if we strip out the subjective Brand Value.

But the reality is, half the country still support Donald Trump, so he will indeed always have some type of brand value going forward.

Donald Trump's real estate loans of about $500 million sound large, but they are only 5.5% of Donald Trump's assets. In other words, his asset-to-liability ratio is 18X, which makes him extremely solvent.

Even if we strip out the $4 billion in Brand Value, Donald Trump's asset-to-liability ratio is still a healthy 10.4X.

Donald Trump's 2013 Net Worth

Donald Trump's 2021 Net Worth Estimate

Given the S&P 500 went up 31% in 2019 and up another 15% in 2020, it's safe to estimate Donald Trump's Core Net Worth is higher today.

Since January 1, 2014, the S&P 500 is up 49% excluding dividend reinvestments. New York City and other expensive coastal city real estate is up between 30% – 40% as well.

Therefore, we can estimate that Donald Trump's Core Net Worth of $4.2 billion in 2013 is up around 50%, or to $6+ billion in 2021.

I'm sure Donald Trump would love to increase his $4 billion Brand Value to bring him over a $10 billion net worth. But the figure is too subjective to calculate, and really only for ego purposes.

Once you're worth several billion dollars, there's really no difference in lifestyle.

Donald Trump Gave The Heartland A Boost

Donald Trump was a strong positive for heartland real estate because the heartland is who voted him into office. Heartland real estate is much cheaper than coastal city real estate with much higher net rental yields (cap rates). Thanks to four years of Donald Trump, more capital is flowing towards the South and Midwest real estate. Buying property in 18-hour cities is very strong.

Here is a reminder of which states voted for Trump, and which states are likely to be net winners during a Trump Presidency. As a savvy investor, you must put aside your political beliefs and focus on logic to make money.

Donald Trump's Net Worth And Net Worth Composition

Best Way To Invest In Heartland Real Estate

With a migration shift by companies and by employees to lower cost areas of the country, the best way to invest in heartland real estate is through top tier real estate crowdfunding platforms like Fundrise and CrowdStreet. Both are free to sign up and explore.

Fundrise offers diversified eREITs for the average investor to gain exposure. While CrowdStreet offers individual commercial real estate opportunities in 18-hour cities. If you have a lot more capital and are a real estate enthusiast, you can build your own select real estate portfolio with CrowdStreet.

These real estate crowdfunding platforms pre-screen all the deals, provide the research, and let you invest in commercial real estate deals that was once only available to the very rich like Donald Trump or institutional investors.

Further, investing in real estate crowdfunding is completely passive, compared to investing in physical property where you have to manage tenants and maintain the property.

I've personally invested $810,000 into 18 different commercial real estate projects across the country. My returns so far have been roughly 15% a year since 2016.

Financial Samurai Real Estate Crowdfunding Dashboard

How To Grow Your Net Worth

Growing your net worth is all about owning appreciating assets over the long term. Donald Trump's favorite asset has been prime real estate in New York City since he graduated from college.

There's a reason why the average net worth of a homeowner is around 45X greater than the average net worth of a renter. The homeowner methodically pays down the mortgage and builds equity at the same time. The renter is a price taker who pays ever higher rents thanks to inflation.

Inflation is too powerful a force to combat. If you want to build a greater net worth, you must own assets that tend to appreciate over time: real estate, blue chip companies with strong earnings growth, equity in your own business, fine art, and more.

The other way to grow your net worth is by widening the gap between your income and your expenses. It's not how much you make, it's how much you keep. You hear too many people making healthy incomes, but end up broke or living paycheck to paycheck because they couldn't control their spending.

Related: AOC Net Worth Keeps Rising

Track Your Net Worth Wisely

If you want to grow your net worth, you must diligently track your finances. Use a free financial tool like Personal Capital to track your cash flow, analyze your investments for excessive fees, manage your net worth, and plan for your retirement future all for free.

Don’t be like the typical American who wings it with their finances and wakes up 10 years later wondering where their money went. Take charge of your finances by leveraging technology because nobody cares more about your money than you.

Remember, there is no rewind button in life. It's better to retire with a little too much money, than a little too little. The last thing you want to do when you're 65 is have to go back to work.

Personal Capital Retirement Planning Calculation For Estate Tax Planning

About the Author: Sam worked in investing banking for 13 years. He received his undergraduate degree in Economics from The College of William & Mary and got his MBA from UC Berkeley. In 2012, Sam was able to retire at the age of 34 largely due to his investments that now generate roughly $250,000 a year in passive income. He spends time playing tennis and taking care of his family. Financial Samurai was started in 2009 and is one of the most trusted personal finance sites on the web with over 1.5 million pageviews a month.