Trump to allow "alternative investments" for 401K retirement accounts

The Journal's sources indicated that the order's details aren't yet finalized and are still subject to the administration's review ahead of an announcement.

Private assets are typically characterized by higher risk and potentially higher returns compared to traditional investments like stocks and bonds that are traded on public markets.

Bryan Corbett, president and CEO of MFA, a trade association that represents alternative asset management options such as private credit and hedge funds, touted the anticipated order as giving investors the ability to further diversify their investment portfolio in a Reuters report.

"Expanding access to alternative investments in 401(k) retirement plans will provide more Americans with the diversification and investment options needed to build wealth and save for a successful retirement," Corbett said.

During Trump's first term, the Labor Department indicated in a 2020 letter that firms may responsibly include private equity in certain investment products like target-date funds if they carefully consider the risks and fees associated with their inclusion.

The Biden administration reversed that policy the following year, with the Labor Department saying it does "not endorse or recommend such investments."

In anticipation of the Trump administration's planned move on private-market investments in retirement funds, several firms have taken steps to put out investment products that include such assets.

The Journal noted that Apollo Global Management and State Street have released a target-date fund that includes a private-markets component, while Blue Owl Capital indicated this week it will collaborate with Voya on products that include private markets in 401(k) investments.

If Donald Trump is backing it, then it must be shady.

Are the Slovenian Whore's NFTs now an investment vehicle?

tl;dr

What does this mean?

[quote] What does this mean?

I'm confused too, R4.

When it comes to the legalized gambling racket of Wall Street and investing, I'm completely in the dark.

Then again, I was never good at shooting craps. Which is basically what the stock market really is.

R5 - I'm the worst when it comes to stocks. It's all Greek to me.

I have a 403 (b) and I'm also going to start back up a ROTH IRA again this year. I had my sister choose which stocks because she's figured that stuff out.

Whenever I see a scene in a movie (or a clip on the news) of what Wall Street is like, I just marvel at it. "What is this strange little world?"

That's right R2.

Look for how it makes him money

A Magic Beans economy.

And when these shady "investments" go belly-up in the next economic downturn, these investors will go crying to the feds to bail them out.

You mean the people who killed Dodd-Frank and the Consumer Financial Protection Bureau will be looking for bailouts/

Do tell...

We hate regulations but we will call upon the government in our time of need.

Is “alternative investments” just code for his shitty crypto scam?

The scam is that it lets American SUCKERS invest their hard earned retirement money into risky ventures, with the possibility of them losing it all, by the time they reach retirement.

But at least the companies they invested in will be rich!

Then they'll steal all the money from the company, and declare bankruptcy. Leaving investors with nothing.

You realize this is what Trump did in the 1980s, and that's how he got out of debt.

Remember that dismantled Dodd-Frank and the CFPB.

And when things fail they will want to be bailed out again

R12 - The more news I've watched today, the more that sounds exactly right. I think other cryptocurrencies will be able to be included as well.

“Alternative investments” = not stocks and bonds. So it’s crypto, plus maybe some real estate investment vehicles that will further mess up the housing market.

Invest in trump cologne

I'm confused. Even if you have a 401K you can still do outside investments, right? Nobody was stopping anyone from doing that.

Trump likes quick, short-term 'fixes' so he can take the money and run- and surround himself with lawyers if you start to protest.

R18, most people don't manage their own 401K accounts. The plans are usually sponsored by an employer and often administered by a third party. Allowing the employer and/or plan administrator to divert employees' money in sketchy investments means that it's less likely that they can be sued for violating their fiduciary obligations.