Retirement savers are excited about the possibility of investing in private assets, with nearly half of 401(k) investors interested in private equity and debt. President Trump’s executive order instructs the Department of Labor to draft guidance for defined-contribution plans to include these investments.

While investors see private assets as offering diversification and better returns, experts caution against adding risky assets like crypto to retirement accounts. Half of savers think private assets sound risky, prompting skepticism, as these investments may come with limited ability to sell early and higher fees than traditional options.

Most retirement savers lack knowledge about target-date funds, where most plan assets are currently invested. Education is key in understanding the differences in returns and risks between various investment options, especially private assets. Advisers recommend starting with a small allocation of 5% to 10% in private assets.

Schroders data shows that among those interested in investing in private assets, many would allocate less than 10% of their retirement savings. The private investment landscape is evolving rapidly, and plan fiduciaries must monitor if including private assets makes sense for their participants. Expert advice and education are crucial for navigating this new investment landscape.

Read more at Yahoo Finance: Retirement savers are eager to invest in private assets, new survey finds