Alternative Investments

Alternative Investments

Alternative investments add risks to 401(k) plans

Dec. 28, 2025, 6:04 a.m. ETRecently, President Donald Trump signed an executive order that opens 401(k) retirement plans to alternative investments including private equity and cryptocurrency. Although the order was signed in August, federal agencies are only now beginning the process of interpreting and implementing its provisions, making this an important and timely moment to revisit its implications.Though these asset classes can potentially increase an individual’s long-term returns, they come with greater complexity, reduced liquidity, and higher fees than the typical selection of stocks and bonds within a retirement savings...
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