{"id":128888,"date":"2025-08-08T11:17:21","date_gmt":"2025-08-08T11:17:21","guid":{"rendered":"https:\/\/www.europesays.com\/us\/128888\/"},"modified":"2025-08-08T11:17:21","modified_gmt":"2025-08-08T11:17:21","slug":"donald-trump-reshapes-investing-for-retirement-executive-order-opens-401k-accounts-to-private-equity-crypto-industry-urges-caution","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/128888\/","title":{"rendered":"Donald Trump reshapes investing for retirement: Executive order opens 401(k) accounts to private equity, crypto; industry urges caution"},"content":{"rendered":"

\"DonaldDonald Trump (File photo) A sweeping executive order signed by US President Donald Trump<\/a> on Thursday has paved the way for 401(k) accounts to include private equity, cryptocurrency<\/a>, and other alternative assets as retirement saving option.A 401(k) is a tax-advantaged retirement savings plan where employees can defer part of their salary, often with employer contributions, and invest the funds for growth, with taxes generally paid upon withdrawal in retirement.<\/p>\n

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The order directs the Labor Department and other federal agencies to revise the definition of \u201cqualified assets\u201d under the Employee Retirement Income Security Act of 1974 (ERISA), which governs retirement plans. Once implemented, employers could offer workers a broader menu of investment choices, including private equity funds, bitcoin, and real estate. The rulemaking process could take several months. Currently, most 401(k) portfolios are concentrated in stocks, bonds, cash, and widely traded commodities like gold. Alternative assets have been largely off-limits due to concerns over volatility, high fees, and limited liquidity. The change is a win for the $5 trillion private equity sector and the cryptocurrency industry- both of which backed Trump\u2019s 2024 campaign and have long sought ERISA access. Blackstone CEO Steve Schwarzman has repeatedly called for private equity inclusion in retirement plans, while Coinbase has lobbied for broader public adoption of crypto. Bitcoin prices rose two per cent to $116,542 on Thursday, nearly doubling since Trump\u2019s election, as reported by AP. Crypto executives argue the asset offers long-term upside, particularly for younger, tech-savvy workers. \u201cIt was inevitable that bitcoin would make its way into American 401(k)s,\u201d said Cory Klippsten, CEO of Swan Bitcoin. Private equity has averaged 13 per cent annual returns since 1990, compared to 10.6 per cent for the S&P 500, including dividends, according to Cambridge Associates. However, such investments typically require long-term commitments and carry higher costs.Also read: Donald Trump’s Genius Act- Major crypto bill for stablecoins passed in US; here is what to know<\/a> Industry groups welcomed Trump\u2019s move but urged caution. \u201cWe look forward to working with the Trump Administration on a thoughtful framework that expands access to alternatives for retirement savers with appropriate investor guardrails,\u201d said Bryan Corbett, CEO of the Managed Funds Association. Major retirement providers like Fidelity, Vanguard, and T. Rowe Price will need to develop suitable products, and adoption could take years. Vanguard, in a statement, said it is committed to educating retirement investors on the risks and opportunities of private assets but has not yet pledged to launch such a product. The Biden administration had previously advised treating crypto investments with \u201cextreme care\u201d given their volatility. Trump\u2019s move marks a sharp policy shift \u2014 one that could channel billions in retirement savings into high-growth, high-risk markets.<\/p>\n","protected":false},"excerpt":{"rendered":"Donald Trump (File photo) A sweeping executive order signed by US President Donald Trump on Thursday has paved…\n","protected":false},"author":3,"featured_media":128889,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[78678,64,821,69,78679,20796,255,3743,67,132,68],"class_list":{"0":"post-128888","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-401k-retirement-accounts","9":"tag-business","10":"tag-cryptocurrency","11":"tag-donald-trump","12":"tag-employee-retirement-income-security-act","13":"tag-executive-order","14":"tag-personal-finance","15":"tag-private-equity","16":"tag-united-states","17":"tag-unitedstates","18":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/114992870207901512","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/128888","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=128888"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/128888\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/128889"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=128888"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=128888"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=128888"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}