What Trump's Executive Order on 401(K)s Means for Workers Who Hope to Retire
Briefly

What Trump's Executive Order on 401(K)s Means for Workers Who Hope to Retire
"On August 7, 2025, U.S. President Donald Trump signed an executive order titled "Democratizing Access to Alternative Assets for 401(K) Investors." Trump's executive order defines alternative assets in a very broad manner to include private equity and private credit, real estate, commodities, and cryptocurrencies. At any rate, with nearly $9 trillion being currently held in 401(K) plans, this executive order represents a historic shift that could potentially reshape how people save for retirement and have indeed major effects on the economy."
"You are right: Trump signed an executive order on August 7, 2025, which, like so many of the Trumpian orders, has an Orwellian title: 'Democratizing Access to Alternative Assets for 401(K) Investors.' It is Orwellian because, in effect, it will allow"
On August 7, 2025, President Trump signed an executive order titled "Democratizing Access to Alternative Assets for 401(K) Investors." The order broadly defines alternative assets to include private equity, private credit, real estate, commodities, and cryptocurrencies. Nearly $9 trillion currently held in 401(k) plans means the change could reshape retirement savings and affect the wider economy. Critics warn the policy carries high risks for retirement savers and that alternative assets often deliver, at best, average returns. The order's title is characterized as Orwellian, implying a mismatch between the label and potential consequences. Concerns include increased exposure to illiquid, volatile investments and potential harm to ordinary workers' retirement security.
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