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Let’s talk about Donald Trump’s corporate bankruptcies. There is a big difference between a corporate bankruptcy and a personal bankruptcy.
I am not a fan of Trump’s. I don’t hate the guy. I am a student of what works. But the reality is that the stuff he is talking about in terms of the corporate bankruptcies is true. Just go ahead and check the legal chain. It’s really easy to see. It’s public record.
Now let’s explain who the real pimp in the Trump family is: that would be Fred Trump. He’s the one that started all of this. Then Donald was the beneficiary. The one that pulled the lever and got everything started was Fred Trump.
Fred Trump’s wealth got to the point long before Donald took over where somebody advised him to go see an attorney to protect his estate. As the wealth is created, it is protected. He got an estate plan.
People want to know how Trump could be worth $10 billion and file bankruptcy. There is Donald Trump, the family and the family trust. Then there is corporation #1, corporation #2, corporation #3 and the rest. There are many layers.
So, the money that Fred Trump built, that empire is probably in the trust fund that is going to benefit the grandkids of the grandkids of Donald Trump. That money is never going to be put in jeopardy of being lost. They can’t get sued for it because it is in a trust. They don’t own it anymore; they just control it. That’s the whole deal.
If you set up a corporation correctly, then any corporate liabilities are contained within the company if you set it up right. You could have personal assets of $100 million. Then you have this company that is doing $25 million a year. Let’s say you have a driver driving this truck and he gets in an accident. Then a lot of bad stuff happens. They can only sue the driver of that truck and the corporation. Those were the only things exposed to that risk. That’s why Donald Trump can file bankruptcy and still be phenomenally wealthy.
People might say that is unfair. Is it? It would be unfair if you could not do that too. Is there anything keeping you from creating a corporation? Nope. Is there anything keeping you from studying to get a financial education so you can protect yourself and do these things? Nope.
Don’t hate the player. Don’t hate the game. Learn the rules so you can fucking win. One of the rules is, “He who has the gold writes the rules.” That is the golden rule, not “Do unto others as you would have them do to unto you.” It’s been like that since the beginning of time. It’s going to be like that until the end of time.
During the debates, Trump was questioned about his four bankruptcies. He didn’t actually file bankruptcy. His corporations did. What he said about the bankers being killers is true. If you’ve ever been in high-level negotiations, it’s not like on TV. These guys are pushing back hard. Some of these guys will hammer your nuts to the table. It’s stressful. If you make a bad decision with so much money at stake, your career is over.
When people look at Trump and say this is unfair that he can file bankruptcy and still be rich, they may not be thinking about it like I do. If you don’t understand why Trump can do this, then you haven’t become a student of financial matters. Having a financial education isn’t just about knowing what your credit score is. It’s not about having a 401K.
That could be part of it. You have to know how legal structures can benefit you and fuck you. One of the things I tell people is to incorporate if they have a solid business model that is making money. In the beginning when you are validating your concept, no, you don’t need to incorporate.
The problem is too many people don’t want to take responsibility for what happens to them. That’s why they don’t know these things. You have people going on and on about how hard things are. Are they really?
Why are they terrible? Because you lack education. I’m not talking about a formal education. There are plenty of people out here with PhDs who are damn near homeless.
The reason I don’t understand the anger people feel for Trump is he’s not doing this in a closet. He’s doing this in the bright light of day. There is no closet. It’s not hidden. It’s public record if you care to research it. By law, it’s transparent.
The question is why aren’t people taking that information and running with it.
When you are out there doing your thing and building your business, don’t have kneejerk reactions to thinks you hear. Before you pass judgment, do some research first. Educate yourself. Take yourself to a higher level intellectually so you can understand what is going on.
You have to have containers of risk. That way you can’t lose your money in lawsuits. That’s why Trump still has money after the bankruptcies and lawsuits.
That’s one of the things that makes this country great. You can fuck up and owe a bunch of people money, then file bankruptcy and it’s forgiven. Then you can start fresh. There have been many entrepreneurs who have gone bankrupt but who have done great stuff on that second, third or fourth try.
That’s one of the reasons people are swimming from Cuba to get here. People are jumping over the fence. They’re doing whatever they have to do to get here.
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