Not giving up all your cash or selling assets for a bond is the best financial decision for anyone in most cases.
What if it was you, the bond was 10k.
You only have stocks and if you sell them you'd have short term capital gains tax.
You're confident you're going to win on appeal (not that I think Trump will win).
If you sell your stocks you're out thousands in taxes and if the prices move up, you'll have even less shares after.
If someone else posts the bond you don't suffer any taxes unless you lose.
Cash also has value. It gives you options. Giving it all up for a bond is also bad.
This isn't a Trump or millionaire thing. It's an everyone thing.
Edit: the problem with Trump is no one believed he a actually has the money for the bond (especially the 440mil one prior) except for property which has been grossly over valued. And no one trusts he would pay if he loses because he has a habit of not laying paying bills
Yes, but the article states that the bond was collateralized by $175 MM in cash—so it must have already been cash or liquidated anyway.
Giving up liquid cash is also bad as it limits your options.
He can't use this money for anything else now as he had to collateralize it. He's still able to earn interest as its his account, but he can't use it for the election for example. And no one would lend him money against it because he might lose it.
If he'd been a trustworthy person, he'd still have 100% control of that cash.
It's not a good situation to be in for anyone.
He also can't touch that Schwab account so it's just the same as putting up the bond himself
Can't or legally can't?
I imagine since it's his account he might be able to somehow run off with it, but in so doing would be breaking the law?
That's also my guess. May be monitored.
And we all know how harshly he gets punished for breaking the law.
Not giving up all your cash or selling assets for a bond is the best financial decision for anyone in most cases.
What if it was you, the bond was 10k.
You only have stocks and if you sell them you'd have short term capital gains tax.
You're confident you're going to win on appeal (not that I think Trump will win).
If you sell your stocks you're out thousands in taxes and if the prices move up, you'll have even less shares after.
If someone else posts the bond you don't suffer any taxes unless you lose.
Cash also has value. It gives you options. Giving it all up for a bond is also bad.
This isn't a Trump or millionaire thing. It's an everyone thing.
Edit: the problem with Trump is no one believed he a actually has the money for the bond (especially the 440mil one prior) except for property which has been grossly over valued. And no one trusts he would pay if he loses because he has a habit of not laying paying bills
Yes, but the article states that the bond was collateralized by $175 MM in cash—so it must have already been cash or liquidated anyway.
Giving up liquid cash is also bad as it limits your options.
He can't use this money for anything else now as he had to collateralize it. He's still able to earn interest as its his account, but he can't use it for the election for example. And no one would lend him money against it because he might lose it.
If he'd been a trustworthy person, he'd still have 100% control of that cash.
It's not a good situation to be in for anyone.
He also can't touch that Schwab account so it's just the same as putting up the bond himself
Can't or legally can't?
I imagine since it's his account he might be able to somehow run off with it, but in so doing would be breaking the law?
That's also my guess. May be monitored.
And we all know how harshly he gets punished for breaking the law.