Posted on 08/07/2025 3:19:37 PM PDT by JSM_Liberty
U.S. President Donald Trump signed an executive order on Thursday that aims to allow private equity, real estate, cryptocurrency, and other alternative assets in 401(k) retirement accounts. The order smoothes the way for private equity and other fund managers to tap into trillions of dollars of Americans' retirement savings. It could open up a vast new funding source to managers of alternative assets outside of stocks, bonds, and cash, though critics say it also could bring too much risk into retirement investments.
"The Securities and Exchange Commission must consider ways to facilitate access to alternative asset investments by participants in defined-contribution retirement plans," ... the White House said. It directs the Labor Secretary to consult with her counterparts at the Treasury Department, the SEC, and other federal regulators, and to "re-examine" previous guidance. Such a move could be a boon for big alternative asset managers such as Blackstone , KKR , and Apollo Global Management , by opening the $12-trillion market for retirement funds, known as defined contribution plans, to their investments. Some of those firms have already struck partnerships with asset managers who run those plans.
The world's largest asset manager, BlackRock (BK.N) , plans to launch its own retirement fund that includes private equity and private credit assets next year. Proponents argue that younger savers can benefit from potentially higher returns on riskier investments in funds that get more conservative as they approach retirement. "On the asset manager side, it's a $12-trillion retirement market that they have previously not had access to. For them, there's certainly a lot of opportunity," said Morningstar analyst Jason Kephart. "From the individual investor standpoint, though, that's where it's less clear after all the additional fees, the additional complexity, and less transparency," Kephart added. The new investment options carry lower disclosure requirements ...
(Excerpt) Read more at reuters.com ...
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Suckas.
As a reminder, with the mortgage meltdown there were calls to restrict “predatory employers” and “predatory retirement asset managers” (or some such terms) from letting people invest in too much risky stuff in their 401K’s. Ostensibly to protect us from another stock crash. In reality, forcing us to invest into only a few options.
Pork belly futures?
This is a key quote
“CFO Martin Small said the industry may seek litigation reform before it can expand into the market.”
In other words they will try to sell garbage to investors and when it goes belly up they don’t want to be sued.
Eliminate the income tax and there be no need for 401k accounts ... And many other things as well ...
Citizens can invest the way they want. Every person is responsible for their own investments without big brother limiting their choices for their own good.
Sounds like freedom to me.
Well, who do you think keeps the good private equity deals for their own portfolios? Big hedge funds and major money managers, that’s who.
So what kind of deals do they sell to retail investors? You guessed it, the bad ones. Of course, the really bad ones can be sold to Japanese banks, they’ll fall for anything.
Your employer will still have to approve. I worked with a lady who had worked at a small firm but the owner loved investing to the point if you wanted to invest in individual stocks, it was available in their plan.
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