Trump Eyes Big Move to Reshape 401(k) Options - Here's What It Means for Your Retirement

President Trump is preparing an executive order that would allow more 401(k) retirement plans to include private-market investments, potentially changing how millions of Americans save for retirement.

Key Facts:

The upcoming order would direct the Labor Department and SEC to issue new guidance for including private assets in 401(k)s.
Private assets include investments like private equity, real estate, hedge funds, and venture capital.
The Biden administration previously reversed Trump-era support for private investments in retirement funds.
Major firms like Apollo Global, State Street, and Blue Owl Capital are already developing products tied to this shift.
MFA CEO Bryan Corbett said this move would give workers more options to diversify and build retirement wealth.

The Rest of The Story:

President Trump’s expected executive order would direct two federal agencies—the Labor Department and the SEC—to give employers and plan managers clear rules for including private-market investments in retirement plans like 401(k)s.

These types of investments are not traded on public exchanges and often involve higher risk, but they also offer the chance for higher returns.

This wouldn’t be the first time the Trump administration pushed for this change.

Back in 2020, Trump’s Labor Department issued a letter supporting the idea under strict conditions.

However, the Biden administration rolled that back in 2021, discouraging such investments altogether.

Private firms are already acting on the assumption that the rules will change again.

Apollo and State Street have teamed up to offer a target-date fund with a private asset component.

Blue Owl Capital is working with Voya on similar offerings.

This signals a strong industry expectation that retirement investing is about to open up in new ways.

Commentary:

Giving workers more options in their 401(k) plans is a smart move, especially in an economy where inflation and market volatility can erode savings.

Private investments may not be for everyone, but in the right mix, they offer the potential for higher returns and long-term growth.

Diversification remains the cornerstone of any strong retirement strategy.

Including private-market investments adds another layer of choice, and that’s a good thing.

When plan administrators bundle these into target-date funds or similar products, it helps protect individual savers from making risky choices on their own.

It’s also worth noting that these investments won’t be do-it-yourself picks.

They’ll be managed by professionals inside broader investment funds.

That means individual workers get access to private equity and real estate without having to manage the complexity or risk directly.

This move aligns with the idea of treating workers like adults who can benefit from greater flexibility.

The Bottom Line:

Trump’s proposed order would expand retirement investment choices for millions of Americans.

By allowing private assets into 401(k) plans under regulated structures, workers could benefit from better long-term returns and more diverse portfolios.

This shift empowers individuals to take greater control of their financial future, while still protecting them through structured, fund-based access.