President Donald Trump is reportedly planning to sign an executive order expanding access to private-market investments in retirement accounts, particularly 401(k) plans.
The move would direct the Labor Department and Securities and Exchange Commission to develop regulatory guidance for employers and plan administrators on including private assets in these plans. Private market investments include private equity, venture capital, real estate, and hedge funds that aren’t traded on public exchanges.
These investments are typically characterized by higher risk and potentially higher returns compared to traditional investments like stocks and bonds. However, proponents argue that expanding access to alternative investments will provide Americans with more diversification options to build wealth and save for a successful retirement.
Several firms have already developed new investment products in anticipation of the executive order, including Apollo Global Management and State Street, which have released target-date funds with private-markets components, and Blue Owl Capital, which will collaborate on products that include private markets in 401(k) investments.
Source: https://www.foxbusiness.com/economy/trump-reportedly-plans-order-open-401ks-private-markets-what-means-your-retirement