Small business owners, listen up: A recent executive order from the Trump administration could spell big changes ahead for your employees’ 401(k)s.
In August, President Trump moved to make it easier for retirement plans to include alternative asset investments, including private equity and debt as well as real estate and digital assets such as crypto. His order said that while many public pension plans already include these kinds of assets, most of the more than 90 million Americans who participate in employer-sponsored, defined-contribution retirement plans—especially 401(k)s—are left out.
Skeptics argue that these assets are riskier than the bonds and public stocks that typically make up retirement plans, and that for private equity in particular, the higher fees and long timelines would make them unappealing for many workers. Still, it looks like change is coming down the pipeline one way or another—however slowly.
Inc. spoke with a variety of retirement plan experts—including the retirement plan providers Gusto and Human Interest as well as several academics—to learn how employers can prepare for the regulatory shifts headed their way.