Debt & Savings

Private Assets May Soon Be an Option in 401(k)s. Should You Invest?

President Donald Trump is poised to sign an executive order that would pave the way for alternative investments in workplace retirement accounts.

The New York Stock Exchange

Photographer: Michael Nagle/Bloomberg

President Donald Trump is reportedly poised to sign an executive order that would allow employees to invest in private assets through their 401(k) retirement plans.

While no details have been released, it’s a move the industry has long pushed, as it eyes the roughly $12.5 trillion parked in employer-sponsored accounts as a prime growth area. Proponents argue it would give ordinary retirement savers access to bigger returns in investments like private equity and debt funds that historically been aimed at wealthier investors.