President Trump signed an executive order Thursday that will open the doors for 401(k) retirement investors to stash their savings in private assets.
The directive instructs the Department of Labor and the Securities and Exchange Commission to draft guidance for defined-contribution plans to incorporate private-market investments, including private equity, venture capital, hedge funds, real estate, and possibly gold and crypto.
Backers say the shift offers diversification from plain vanilla stocks and bonds and potential juiced-up returns over time.
All well and good, but they come with red flags for retirement savers.
Read more: Bitcoin, crypto stocks rally ahead of Trump order opening 401(k) plans to alternative assets
Private assets come in a panoply of flavors.
“They all have different returns and risks, and you need to understand those differences,” Lisa…
