President Donald Trump is reportedly considering a sweeping executive order that would allow Americans to invest their 401(k) retirement savings into private markets — including hedge funds, real estate, private equity, and venture capital.
The move, first reported by The Wall Street Journal, would mark the biggest shift in retirement policy in decades.
The expected order will instruct the Labor Department to coordinate with the SEC to craft new guidance for employers and plan administrators.
If implemented, this would:
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Give 401(k) holders access to private investments not listed on stock exchanges.
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End the current limitations that restrict plans mostly to stocks and bonds.
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Allow Americans to grow their savings through higher-yielding, higher-risk options.
The U.S. 401(k) system currently holds about $12.5 trillion, the bulk of which has remained closed to private markets.
The Pros and the Risks
Trump allies and financial leaders are praising the proposal as a bold leap forward in giving working Americans more tools to build long-term wealth.
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