Big changes could be coming to your 401(k)
CNN · Just In
CNN
Just In
President Donald Trump signed an executive order that could make it easier for 401(k) plans to offer alternative investment options, including private equity. CNN’s Jeanne Sahadi breaks down what you need to know.
Breakdown
- President Trump signed an executive order to ease access to alternative investments in 401(k)s.
- Alternative investments like private equity have typically been limited to institutional investors and the wealthy. 8s
- Regulatory agencies must revise guidance before employers can offer these options. 21s
- Potential benefits include broader diversification, but risks include higher costs and less transparency. 53s
- Critics, including Senator Elizabeth Warren, have raised concerns about retail investor exposure. 1m 15s