President Trump signed an executive order allowing more private equity, real estate, and cryptocurrency in 401(k) retirement accounts. Critics warn of higher risk, fees, and lack of disclosure. Asset managers see it as a positive step forward in modernizing retirement savings, potentially benefiting firms like Blackstone, KKR, and Apollo Global Management.

The order directs the Labor Secretary and SEC to make it easier for investors to access alternative assets in retirement plans. BlackRock plans to launch its own retirement fund including private equity and private credit assets. Proponents argue younger savers can benefit from higher returns on riskier investments.

Private equity firms anticipate new cash flow from retail investors. Potential lawsuits may arise from investors not understanding complex investments. Litigation risk and challenges for asset managers are acknowledged by BlackRock CEO Larry Fink.

Access to cryptocurrencies in 401(k)s would be Trump’s latest embrace of digital assets. Democratic Senator Elizabeth Warren raises concerns about lack of investor protections and high fees in private investments. The move could potentially benefit asset managers operating crypto ETFs like BlackRock and Fidelity.

Read more at Yahoo Finance: Trump signs order broadening access for alternative assets in 401(k)s