President Trump signed an executive order allowing 401(k) investors to put savings in private equity, real estate, and cryptocurrency. While promising high yields, these assets lack transparency and liquidity. Valuation methods are subjective, leading to potential risks for investors. Critics argue the move prioritizes Wall Street profits over retail investors’ interests. A survey shows fear of fraud as the main barrier to alternative asset investment. Wall Street asset managers like BlackRock are preparing to add private investments to 401(k) plans, with a 5% to 20% allocation expected by 2026. Empower and other retirement giants are also offering access to private equity and credit. However, the logistics and impact on fees and transparency in retirement accounts remain uncertain.

Read more at Yahoo Finance.: Trump wants private assets in 401(k)s. How do everyday investors value them?