Trump Signs Order Allowing Alternative Assets in Retirement Plans

According to BlockBeats, U.S. President Donald Trump has signed an executive order permitting alternative assets such as private equity, cryptocurrency, and real estate to be included in workplace retirement plans. However, some investor rights advocates caution that while these new investments may offer attractive returns, they also pose significant risks to long-term retirement savers. Jerry Schlichter, founding partner of Schlichter Bogard, a law firm specializing in high-fee 401(k) litigation, emphasized that the average person's goal is to have a secure and reliable retirement plan. He warned that new fields like cryptocurrency and private equity are fraught with dangers for investors. Investment experts typically recommend diversifying core long-term portfolios with assets that provide stable returns over several decades. Schlichter noted that given the stock market's long-term upward trend, broad-based stock index funds are suitable 401(k) investment choices. The issues with cryptocurrency are evident. Despite some cryptocurrencies delivering remarkable returns, these assets have not been around long enough to prove their safety. "Cryptocurrencies lack a long-term performance history and exhibit extreme volatility in the short to medium term," Schlichter stated. "If you don't understand this investment, it shouldn't be relied upon as a retirement asset."