Trump is pushing to include risky assets like crypto and private equity in 401(k)s

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Why this endangers retirement savers and the economy

Key takeaways

President Trump has veered away from the path that previous administrations have taken on 401(k) and other retirement plans. Instead of protecting the millions of workers with retirement accounts, his administration is trying to knock down guardrails that protect retirement savers.

Trump is proposing to make risky investments more widely available to ordinary savers and make it harder to sue the retirement plan sponsors and advisers who encourage these types of investments.

What kinds of problems could these changes cause?

Some retirement savers might experience life-altering losses if retirement plan sponsors and advisers steer them into risky and hard-to-value investments like private equity and cryptocurrencies.

Investment options that Trump is promoting include privately traded investments that may be difficult to sell when workers are ready for retirement and digital collectibles that have no intrinsic value but are simply a gamble that someone will pay more for them later.

https://www.epi.org/publication/trump-is-pushing-to-include-risky-assets-like-crypto-and-private-equity-in-401ks-why-this-endangers-retirement-savers-and-the-economy/