I Asked ChatGPT: Should Retirees Follow Trump’s Money Moves or Musk’s?
Written by
Marc Guberti
Edited by
Cory Dudak
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President Trump and Elon Musk took different paths to becoming billionaires. Trump used real estate and leverage as his claim to fame, while Elon Musk started many companies in innovative industries.
While young professionals can use Trump and Musk as examples for building generational wealth, retirees want to preserve their nest eggs. Trump and Musk may not seem like the best aspirations for retirees who want to play it safe, but I decided to ask ChatGPT. Would the AI robot tell us to steer clear from both of them, or choose a winner between the two of them? Here’s what ChatGPT told me.
President Trump’s Money Moves
I first asked ChatGPT to list the money moves of President Trump and Elon Musk, starting with Trump. These are the money moves ChatGPT associated with Trump:
- Leverage real estate: Use debt to buy and build high-profile properties. Trump also licensed his name for some of the properties instead of owning them, which reduced his risk.
- Leverage debt: He has used debt from various banks to fund large deals while never declaring personal bankruptcy. However, he has declared bankruptcy for some of his businesses.
- Build a personal brand: Trump built a personal brand for himself before it was mainstream. Doing this made the “Trump” name very valuable and helped him start “The Apprentice.”
- Avoid traditional stock investing: This advice isn’t practical for every retiree, but Trump has always preferred real assets over paper assets.
- Tax optimization: Trump looks for creative ways to save taxes, and real estate gives him a lot of advantages through depreciation and loopholes.
- Profiting from media exposure: Trump refers to media exposure as free advertising, which helped build his personal brand and lead to new opportunities.
Elon Musk’s Money Moves
Shortly after listing President Trump’s money moves, ChatGPT went to work listing Musk’s money moves. Here’s what it came up with:
- Bet big on yourself: Musk has made aggressive bets into his own companies with his own cash. He continues to pour significant capital into his ventures instead of resting on his laurels.
- Delay lifestyle inflation: Musk lived modestly for many years after becoming a billionaire, which allowed him to pour more money into his companies. He’s also a minimalist.
- Reinvest instead of diversifying: Musk reinvests profits back into his businesses instead of creating a diverse portfolio. This strategy isn’t the best for people who stick with index funds.
- Solve big problems: If you address big problems, you can make big money. However, retirees may be more focused on preserving their nest eggs.
- Borrow against assets: If you do not sell your assets, you pay a lot less in taxes. Then, you can pass them on to your heirs with a step-up basis applied. Buy, borrow, die is a popular model for preserving generational wealth.
- Embrace extreme risk tolerance: This advice isn’t good for retirees who want to play it safe, but young professionals shouldn’t be afraid of taking risks. However, Musk went on the extreme side and was on the brink of bankruptcy with Tesla, even after selling PayPal for a fortune.
- Engineer, don’t speculate: Musk doesn’t day trade or speculate how things will go in the short run. Investors can take this advice and spend time in the market instead of timing the market.
Whose Money Moves Are Better for Retirees?
ChatGPT said it is “generally not advisable” to follow the money moves of President Trump or Elon Musk if you are a retiree. Both billionaires have high-risk tolerances and long-term horizons that aren’t feasible for retirees. They also have massive personal brands and access to exclusive information that makes them hard to beat.
I pushed ChatGPT to make a choice, and while you can tell the machine was reluctant to recommend either one of them, Trump came out as the winner.
“While still high-risk, Trump’s focus on real estate income and tax management may offer some adaptable elements for retirees — if done conservatively and with professional support.”
ChatGPT didn’t offer the same praise for Musk. While the answer would have been different if I had asked ChatGPT if Musk’s money moves are good for young professionals, here’s what the AI tool said about retirees:
“Musk’s approach is designed for those in wealth-building mode, not for those in capital-preservation or income-drawing phases like most retirees.”
Trump takes the crown in this battle from the top of one of his skyscrapers, while Musk rides off in a self-driving Tesla accompanied by a fleet of his robotaxis.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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