President Donald Trump is reportedly planning to sign an executive order that will enable 401(k) retirement plans to encompass real estate, private equity cryptocurrency, and other alternative assets as part of their investment options.
The order, which was first reported by Bloomberg, could be signed as early as today. Under the order, the Department of Labor will review and update the guidance under the Employee Retirement Income Security Act (ERISA) of 1974. This would expand how retirement savings are managed – 401(k) plans are now limited to focusing on traditional investment vehicles including stocks, bonds, and mutual funds.
Labor Secretary Lori Chavez-DeRemer will be tasked to collaborate with Treasury Secretary Scott Bessent and the Securities and Exchange Commission in creating the new guidelines on alternative assets within 401(k) accounts.
Albeit with a restrictions, real estate has long been an acceptable investment for 401Ks.
Generally not in an employer sponsored plan.
Not so much against real estate as a 401(k) alternative, but I am very concerned about crypto investments. I hope any investments in “alternatives” includes some reasonable limitations so that 401(k) funds are NOT at risk of sudden losses, as crypto tracking appears (to me) to be very difficult in event of fraudulent actions.
Of course, the 2008 recession which impacted real estate also included massive collective fraud in the lending and financial world, a planned attack on homeowner equity.
The book “The Big Short” described the details of the planned stripping of equity thru risky loans. The book was far more insightful than the movie.
Change is good. More options.