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n the coming months, retirement savers may see new investment options emerge for their 401K portfolios, including real estate and cryptocurrency. President Trump's executive order has instructed the Department of Labor to create guidance on non-traditional investments. For many, a 401(k) through their employer is a convenient way to save for retirement, traditionally consisting of stocks and bonds considered safe and stable.
However, experts note that while there's no law against private investments like real estate or crypto, they tend to be riskier. "They can be more volatile," says Nathan Fort, President of Vitality Retirement. "The reporting processes are different with private assets." This new guidance could allow average Americans to invest in typically exclusive assets.
Fort sees a "Robin Hood effect" in this move, allowing individuals to access investments previously reserved for the wealthy. He emphasizes that everyone should educate themselves on their options, especially those nearing retirement who may want to take less risk. "Every individual should see themselves as the CEO of their Retirement Plan," Fort says.
While some are skeptical about investing in cryptocurrency, others believe having more options is a good thing. "No one's forcing your hands," says Zach Preiss. "So, you might as well explore it and see how it turns out."
