Major Changes to 401(k) Plans as Trump Signs Executive Order
In a significant move for investors, Trump has signed an executive order expanding access to alternative assets, including private equity and cryptocurrencies, within 401(k) retirement plans. This decision has been celebrated by private equity firms and could lead to increased options for retirement savers. Experts caution, however, that integrating these high-risk assets into retirement portfolios may pose challenges and require careful consideration. While this order democratizes access for many investors, there are concerns regarding the implications for fiduciary responsibilities and the risks associated with volatile assets like crypto. The landscape of retirement investing is set to change dramatically as employers will play a crucial role in determining which options are available to 401(k) participants.
Forbes, The New York Times, The White House (.gov), Bloomberg.com, CBS News, ABC News, CNBC, CNN, Reuters, BBC