President Trump signed an Executive Order, requiring the Department of Labor to redefine the fiduciary responsibilities of 401K managers. Currently, 401K fiduciaries are required to assure that the funds available to employees meet a certain standard of quality. President Trump seeks for workers to have access to "alternative" investments.
In the order itself, President Trump mentions "equity, debt, or other financial instruments that are not traded on public exchanges, including those where the managers of such investments, if applicable, seek to take an active role in the management of such companies." The order also explicitly wants real estate and cryptocurrency assets included in 401K.
In short, the president wants to remove protections put in place for the retirement assets of working people.
Early in my adult life I was a licensed representative for a major Wall Street firm. My current 401K currently allows me to invest in stocks and bonds and real estate investment trusts; therefore, this is actually already in place in this country. Since leaving the financial industry, I've always enjoyed investing my personal savings. But I am well aware of the risks and I invest my retirement savings accordingly. Trump is seeking more risky investment behavior.
I am not against allowing people to invest their money as they see fit. However, if 401k investors treat their 401k accounts as day trading accounts or crypto trading accounts, they are more likely than not to lose most of their investments. Around 95% of people who attempt day trading lose money. So, investors will need to know that they must proceed with caution, and that day and crypto trading is bullshit and they will almost certainly lose money.
https://www.whitehouse.gov/presidential-actions/2025/08/democratizing-access-to-alternative-assets-for-401k-investors/
https://www.investopedia.com/articles/active-trading/053115/average-rate-return-day-traders.asp#:~:text=But%20what's%20the%20reality%20behind,of%20day%20traders%20lose%20money.
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