who is attempting to incorporate it into the regular banking system via 401(K)s -
Trump wants your 401(k) to access crypto and private equity. Here's what to know.
By Aimee Pichee
Updated on: August 12, 2025 / 2:17 PM EDT / CBS News
President Trump says he wants to democratize retirement by allowing 401(k)s to invest in so-called alternative investments, or strategies outside stocks and other traditional investments, such as private equity and cryptocurrencies. The executive order signed by Mr. Trump on Thursday would open the door to higher-risk investments landing in your 401(k).
It could also potentially serve as a game changer for the $5 trillion private equity industry, which for years has wanted to gain access to America's retirement plans.
The move has the potential to shake up the typically staid menu of investment choices provided to workers through their employer-sponsored defined-contribution plans, which include 401(k)s and 403(b)s, with the latter aimed at teachers. The change might appeal to some savers, given that alternative investments can provide protection from market swings while also providing the potential for outsized returns. But there are several catches to be aware of, experts say.
Private equity investments "have matured into a strong-performing asset class delivering excellent long-term returns, so this is good news for Americans," Simon Tang, head of U.S. at Accelex, a private markets specialist, said in an email.
But there are caveats, experts say. For one, some alternative investments carry higher risk profiles than traditional asset classes, and offer less transparency about their performance on a day-to-day basis. It's also unclear whether or not employers will want to offer such investments given the risks.
(snip)
You may have investment managers who know that the average worker is not obsessively monitoring their 401(K)s and could thus be sold a "bill of goods" with shady consents.
Right now, that stuff is too volatile for even be considered for someone's retirement account.
= new reply since forum marked as read