President Donald Trump has signed an executive order that could reshape 401(k) investing by allowing retirement savers broader access to private equity, cryptocurrency, real estate, and other alternative assets. 

Proponents argue the change could improve diversification and expand opportunities, particularly as more companies remain private, while critics warn of higher risks, limited transparency, and steep fees compared to traditional mutual funds and ETFs. The order directs the Department of Labor and SEC to review guidance and consider rules that would make these investments more accessible within 180 days, potentially encouraging more employers to offer them. 

Supporters in the asset management industry see this as a democratization of private markets, but fiduciary advocates caution that inexperienced investors could suffer devastating losses without strict safeguards. Experts recommend limits—such as capping exposure to 5%–10% of a portfolio—and robust investor education to mitigate risks. 

Finsum: Even if changes take months to materialize, the move signals a major shift in U.S. retirement policy, one that could expand investment menus while also amplifying the stakes for 401(k) participants.