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Key Takeaways A presidential executive order opened the door for alternative investments such as private equity, cryptocurrency and real estate within 401(k) retirement plans.
Inclusion of alternative assets could potentially increase wealth by 15% over a career span, but risks such as higher fees and liquidity constraints require careful consideration.
Entrepreneurs should evaluate potential investments with a focus on timeline, fees and allocation size to safely navigate the expanded investment landscape of 401(k) plans.
If you have been managing your own 401(k) for years, you have probably noticed something frustrating. Your investment menu looks almost identical to what it did a decade ago: stock funds, bond funds, target-date funds, maybe a money market option.
Meanwhile, the pension funds, endowments and family offices have access to a completely different playbook. They invest in private equity, venture capital, real estate deals and infrastructure projects that most of us never see.
That gap is starting to close. In August 2025, President Donald Trump signed an executive order directing regulators to clear the path for alternative investments in 401(k) plans. Within days, the Department of Labor rescinded guidance that had discouraged these options.
This matters for entrepreneurs. But before you start reallocating your retirement savings, you need to understand what you are actually getting into.
What this actually means for your account
The executive order covers six categories: private equity, private credit, real estate, cryptocurrency funds, commodities and infrastructure investments. These are the same asset classes that institutional investors have used for decades to boost returns and reduce volatility.
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