Story perspectives

Trump's Executive Order Opens 401(k) Plans to Alternatives

9/13/2025

Summary

Story summary

President Trump signed an executive order permitting 401(k) plans to invest in alternative assets, including private equity.
Supporters believe this will broaden investment access and enhance retail investor returns.
The debate continues over whether private markets outperform public ones, with mixed performance studies.
A lawsuit questions the SEC's accredited investor standard, potentially affecting access for knowledgeable individuals.
Advisors may need to adjust strategies to align with new regulations while educating clients on associated risks.

History

Historical Context

The Employee Retirement Income Security Act (ERISA) of 1978 established regulations for retirement plans, including 401(k) accounts, which allowed employees to invest in various assets. By 2020, retirement savings had surged to approximately $6 trillion. President Trump's recent executive order to include alternative assets highlights ongoing discussions about investment diversification and its potential impact on retail investors in the evolving retirement landscape.

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Story summary

President Trump signed an executive order permitting 401(k) plans to invest in alternative assets, including private equity.
Supporters believe this will broaden investment access and enhance retail investor returns.
The debate continues over whether private markets outperform public ones, with mixed performance studies.
A lawsuit questions the SEC's accredited investor standard, potentially affecting access for knowledgeable individuals.
Advisors may need to adjust strategies to align with new regulations while educating clients on associated risks.

1 / 2