Stocks, not so much. As for Hillary Clinton, she has a big stake in a stock index fund. Both like cash.
WHEN IT COMES TO INVESTING in the capital markets, Donald Trump takes big risks with bonds. With stocks, not so much. Regardless, his investments could use some work.
Wading through Trump’s 104-page financial-disclosure report, I found a surprisingly scattershot approach to his investments in stocks, mutual funds, exchange-traded funds and hedge funds, worth about $115 million in all. (All presidential candidates must file annual financial-disclosure reports with the Federal Election Commission.)
Trump, who says he’s worth more than $10 billion, owes the lion’s share of his fortune to real estate, licensing of his Trump brand and other private ventures. His disclosure report lists more than 550 ventures, ranging from hotels to an ice-skating rink.
But 20 pages of the report are devoted to investments in hedge funds, as well as ordinary stocks, bonds, mutual funds and ETFs. The report requires candidates to list the value of their holdings in broad ranges— from $1,001 to $10,000, for example. In each case, I’ve used the midpoint of the range to estimate how much Trump has in a particular investment. For instance, Trump reports owning shares of TJX Cos. worth between $50,001 and $100,000, so I’ve valued his holding of the apparel retailer at $75,000.
Trump is a big fan of hedge funds—lightly regulated investment pools that give their managers a lot of leeway—holding about $58.5 million in eight funds. He has a special fondness for hedge funds that invest in risky corners of the bond market, including junk bonds and distressed debt (debt of companies near or currently going through bankruptcy).
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
EMPOWERING FAMILIES WITH FINANCIAL PLANNING
Through her pro bono work, this CFP provides free help with budgeting, saving and more.
THE ALLURE OF SHOULDER SEASON TRAVEL
SHOULDER season can be a great time for a vacation.
A TOOL 10 ADD 10 YOUR ID THEFT ARSENAL
Credit-monitoring services can help you detect fraud quickly.
Give the Gift of Life Insurance
Show your love for your sweetheart by protecting against disaster.
WATCH OUT FOR NUDGES THAT STEER YOU TO TRADE TOO MUCH
ANYONE who has shopped for groceries with a toddler knows to be on high alert for the impulse items the store has thoughtfully placed at a child's eye height.
Lessons for Retirement Success
CHRISTINE Benz is director of personal finance and retirement planning for Morningstar and author of How to Retire: 20 Lessons for a Happy, Successful, and Wealthy Retirement (see a related podcast at Morningstar .com).
GET THE RIGHT ADVICE IN RETIREMENT
If you've saved up a decent-size nest egg with a financial services firm, chances are good it has offered you financial advice-for a price. Is it worth it?
SHIELD YOURSELF FROM FRAUD
RECENTLY, one of my clients shared a harrowing experience.
CHECK YOUR COLLEGE'S FINANCIAL HEALTH
Declining enrollment has forced a growing number of small colleges to shut down.
ESTATE PLANNING - Protect Your Wishes and Your Legacy
NO one likes to imagine getting seriously ill, injured or worse, but these occurrences are a reality of life.
