President Donald Trump signed an executive order allowing Americans to invest their 401(k) retirement savings in cryptocurrency, private equity, and real estate. The move aims to expand retirement investment options, but experts warn of potential risks.
The SEC, Labor Department, and Treasury are updating rules to allow investors to access alternative assets. Some analysts, like Ted Rossman at Bankrate, caution that providers may be hesitant due to costs and potential lawsuits.
However, investing in crypto can provide diversification, according to Vanguard, a major retirement plan provider. The company advises educating investors on the opportunities and risks of private assets.
This announcement comes as Trump unveiled new trade tariffs affecting over 90 trading partners, ranging from 10% to 41%. Retailers have absorbed most tariff increases, but the National Retail Federation warns that stores may cut back on employee investments if this trend continues.
The combined impact of these policy changes creates a new economic landscape, with more potential changes ahead.
Source: https://abcnews.go.com/Live/major-401k-trumps-new-crypto-private-equity-rules/story?id=124461859