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In August, an executive order signed by President Donald Trump (1) opened the door for certain “alternative assets” like private credit, private equity and cryptocurrencies to be included in 401(k)s, expanding what Americans can hold in their 401(k)s and other tax-advantaged retirement accounts.
Proponents of the move said this shift could democratize access to investment opportunities traditionally reserved for institutions and the wealthy. Critics, however, warned that these assets carry complex risks that may not be properly understood by the average investor.
Here’s how the EO could change America’s retirement landscape — and how to protect your own portfolio from unnecessary risk.
Eliminating barriers to private assets
Traditionally, some alternative assets — such as private equity and hedge funds — were restricted to "accredited investors” who either had a net worth of more than $1 million (excluding their primary residence) or annual income exceeding $200,000, according to the U.S. Securities and Exchange Commission (2).
However, the alternative asset landscape has changed over the years, and retail investors are showing growing interest in these investments. A survey by market research firm Opinium found that 21% of retail investors have considered alternative assets, and another 5% plan to invest in them (3).
The most common reason was diversification. Many investors want to move beyond traditional stocks and bonds in pursuit of higher returns.
Some advisors even say that the traditional 60/40 mix of stocks and bonds should be revised to 50/30/20, with the 20% being made up of alternative assets. The idea is that alternative assets can provide a little bit of resilience against market upheaval, which stocks and bonds can be more susceptible to.
For instance, gold is often viewed as an alternative asset that can offer your portfolio greater stability if stocks are shaky. The precious yellow metal is also on a historic bull run, with the spot price hitting a high of about $4,300 per ounce in October (4).
With a gold IRA through Thor Metals, you can invest directly in physical precious metals, like gold, rather than stocks and bonds.
Gold IRAs help investors hold physical gold or gold-related assets in a retirement account, which combines the tax advantages of an IRA and the protective benefits of investing in gold. This can make it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.
Another popular alternative asset is real estate. But you don’t have to buy property outright to benefit from the real estate market.
One option is tapping into this market by investing in shares of vacation homes or rental properties through Arrived.
Backed by world-class investors, including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream without the extra work that comes with being a landlord of your own rental property. That means no leak faucets, burst pipes or midnight maintenance calls.
Start by browsing through their selection of vetted properties, each picked for their potential appreciation and income generation. Once you choose a property, you can start investing with just $100, potentially earning quarterly dividends.
If investing in real estate through rentals doesn’t appeal to you, another alternative asset avenue is commercial real estate. For years, direct access to the $22.5 trillion commercial real estate sector was limited to a select group of elite investors — until now.
First National Realty Partners (FNRP) allows accredited investors to diversify their portfolio through grocery-anchored commercial properties, without taking on the responsibilities of being a landlord.
With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to triple net leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.
Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties.
Hidden risks
Private market funds, which pool money from investors into assets that are not publicly traded on a stock exchange, are another alternative asset class. Private market funds often advertise higher return potential than traditional stocks and bonds, but in practice, those lofty targets can obscure high fees, limited liquidity and inconsistent performance.
As of May 2025, only two of the 14 private equity and venture capital funds tracked by Morningstar had outperformed the S&P 500 since inception (5). Meanwhile, typical private equity fees include 1% to 2.5% in annual management fees — plus 20% or more in performance fees, according to Hamilton Lane (6). That means that as your portfolio grows, if it grows at all, you have to shell out more.
Unlike public markets, private assets lack a deep secondary market, making it difficult to exit investments.
“If there’s a desire to pull out of private equity, there isn’t a way to actually sell that company or sell shares — there’s just no market for it,” said Charles Rotblut, vice president of the American Association of Individual Investors, in an interview with CNBC (7).
The risks of alternative assets go beyond their impact on individual portfolios. A report from the Institute for Economic Policy Research warned that broad retail access to illiquid and opaque assets could create a “systemic risk machine,” increasing the likelihood of financial instability in future downturns (8).
What can you do?
For most investors, sticking with low-cost index funds will remain a sound strategy. However, if you’re keen on exploring private assets, it’s worth consulting with a financial advisor to ensure they fit within your overall financial plan.
Lisa Kirchenbauer, founding partner and senior advisor at Omega Wealth Management, told NPR (9) a sensible approach is to allocate a small portion — around 5% to 10% — of your portfolio to these asset classes.
This can give you a little market resilience without overexposing yourself to illiquidity risks.
Consult an expert
For more personalized advice on whether alternative assets are right for you, try the Advisor.com team. They can connect you with a financial advisor suited to your needs and based in your area. All of their advisors are pre-vetted fiduciaries, meaning that they have a legal obligation to act in your best interest.
After inputting your ZIP code to find a nearby financial professional, you can set up a free call with no obligation to hire to make sure they’re a good fit for you.
The White House (1); SEC (2); Opinium (3); APMEX (4); Morningstar (5); Hamilton Lane (6); CNBC (7); Institute for Economic Policy Research (SIEPR) (8); NPR (9)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
In August, President Donald Trump unveiled an executive order ordering regulators to make it easier for private assets (including private equity, real estate, cryptocurrency and other alternatives) to be a part of retirement savers’ 401(k)s.
It was one of hundreds of executive orders the president has signed this year, and in the churn, some have found it hard to separate the wheat from the chaff. Did the order merely amount to a headline, or was it the starting gun for a permanent change to the retirement landscape?
To Cheryl Nash, the president of APL at InvestCloud, and many others in the industry, the “train has left the station,” and private markets will increasingly be a part of retirement plans in the years to come. Nash said she can’t leave a meeting these days without broaching the topic.
“I don’t think it’s a matter of if,” she said. “It’s a matter of when.”
Alternatives have long featured prominently in defined-benefit plan portfolios, such as pensions. While private asset allocations in defined contribution plans aren’t expressly outlawed, ERISA protections (and the accompanying litigation risks) and a limited product set make it difficult for plan sponsors to include them in 401(k)s. On the product side, however, private market asset managers are seeing a slowdown in institutional investors’ appetite for alternatives, and they’re anxious to develop vehicles to access the approximately $13 trillion held in Americans’ 401(k)s (in addition to the explosion of products aimed at the private wealth channel).
Trump first opened the door to increasing private assets in 401(k)s with an executive order during his first term, which the Biden administration subsequently rescinded. With Trump’s inauguration early this year, alts advocates were newly hopeful this time could be different.
Even before Trump’s August order, the Labor Department rescinded a Biden-era order discouraging the use of crypto in 401(k)s (one of the administration’s many crypto-friendly regulatory moves and coming amidst the Trump family’s increased presence in the crypto space).
Access 'Within Reason'
After the order, SEC Chair Paul Atkins spoke about the need for retail alts access “within reason,” while SEC Commissioner Mark Uyeda urged litigation reform to protect plan sponsors and make it harder for investors (and their attorneys) to sue ERISA fiduciaries opting to offer alts in 401(k) plans.
This last point is top of mind for Rick Pederson, the vice chairman and chief strategy officer for Bow River Capital, a private alternatives investment manager. Pederson expected most of next year’s developments to be at the regulatory level, with the DOL potentially issuing further rulemaking or class exemptions, as well as additional guidance from both the DOL and SEC.
Pederson expected private assets to become mainstream in 401(k) plans by 2027 or 2028, because more legislation was needed from Congress to offset the litigation risks plan sponsors face if they add private asset sleeves before the laws are changed.
“I’m sure someone would argue that participants weren’t adequately informed of risks, etc.,” he said. “So, until we get legislative acknowledgement, I think we’re going to be living in this red zone of potential litigation, even with regulatory change.”
Pederson, Nash and Carlo di Florio, the president of the compliance consulting firm ACA Group, agreed that alts would first show up in retirement accounts via target-date funds or collective investment trusts (which, to some degree, is already happening).
Di Florio noted that such products already have protection through a public fund structure, which includes “enhanced board governance, enhanced transparency, enhanced allocation and conflict risk management policies.”
Preference for Private Equity
According to a recent report on retirement plan advisor trends from Escalent, one in four DC plan advisors said they are likely to recommend alternatives in their lineups, with another 10% stating they already are. Forty-four percent of national advisors and 35% with $50 million or more in managed assets reported that they’re already recommending alternatives or will do so in the future.
Advisors preferred private equity when it came to alts products, with 43% saying they’d recommended it or were likely to do so. PE was followed by private credit, private real estate and venture capital, at 41%, 39% and 32%, respectively.
Sonia Davis, a senior product director in Escalent’s Cogent Syndicated division and lead author of the study, said they expect DC advisors to seek out alternative options as clients increasingly inquire about them.
“The DOL’s decision marked a turning point for the use of alternatives in workplace plans, and the market is still adjusting,” Davis said. “What stands out in our research is how closely advisor interest tracks with the growing curiosity we are seeing among plan participants.”
However, there’s concern that the deregulatory atmosphere is setting up a domino effect that, if it falls, could threaten the stability of American workers’ retirement savings.
‘Risky’ Exposure
In the New York Times Magazine in October, Andrew Ross Sorkin wrote that expanding alts to 401(k)s would be “a live and extremely high-stakes test of whether the most complex corners of finance can be safely opened to millions of ordinary savers.”
And it’s not just pundits; outgoing SEC Commissioner Caroline Crenshaw has harshly criticized the agency’s deregulatory approach under the Trump administration.
In a recent speech at the Brookings Institution in Washington, D.C., Crenshaw stated that opening private markets to retirement assets was “a harmful policy choice,” exposing retail investors to “risky” investments designed explicitly for non-retail players.
“To justify this irresponsible departure from foundational pillars of the securities laws, my colleagues use lots of buzzwords—freedom, diversification, democratization,” she said. “Call it what you will, at bottom, it’s risky, and it’s reckless.”
Di Florio expected regulators to try threading the needle by requiring more disclosure for investors about private assets (even though avoiding the mandates of quarterly earnings and more disclosures can often keep companies private in the first place).
He also expected private market players to opt for compliance with the “rules of the road,” as the 401(k) market would prove too enticing. However, he noted that some private market players were concerned by the encroachment into the retail space.
“They’re concerned that they’ve got this good business, very innovative and entrepreneurial, that’s growing really fast and works well with institutional investors. If some product gets created for retail, and it ends up hiring retail investors and blowing up somehow, they’re going to get all painted with a broad brush, like ‘this industry is awful, and it hurts people,’” he said. “And suddenly the whole industry’s getting regulated.”
In a speech to the American Bar Association earlier this month, Brian Daly, the SEC’s Director of the Division of Investment Management, said that “democratization” for retail investors into alts won’t mean a “big bang” rule transforming “everything about how private funds are structured, moderated and operated,” but would instead move incrementally.
Nash agreed that a single, table-turning rule was unlikely to come from the commission, and she was preparing for piecemeal steps forward while platforms prepare for the operational load that private assets in the retail retirement space would entail.
“I think this year, 2025, set the foundation and the groundwork. In 2026, we’re going to start seeing more of this come into play, more than just the interval funds,” Nash said. “And towards the end of the year in 2026 and early 2027, I think we’ll really see this take hold.”
These investments for the elite are opening to all — but think twice before saying yes
Mark Hulbert
3 min read
Hedge funds, private credit and other alternative assets have produced disappointing long-term returns. - Getty Images
For the first time ever, many investors will be able to allocate a portion of their retirement portfolio to so-called alternative investments, such as private equity, venture capital, private credit and hedge funds.
There’s no denying the allure of alternative investments, given that the U.S. stock market faces a decade of possibly poor returns because of its currently extreme overvaluation. Eight prominent Wall Street firms are projecting that the U.S. stock market over the next 10 years will produce an annualized return that’s less than half of its long-term average. In the popular imagination, at least, alternative investments will do significantly better.
There’s no single performance benchmark for the entire alternative investment industry to which I can point. But the benchmarks that exist tell a discouraging story.
Take hedge funds, for example, which represent a major chunk of the alternative investment industry and have produced disappointing long-term returns. It’s possible that alternative investments other than hedge funds have done significantly better, but this seems doubtful. Assets under management at global hedge funds have grown to $5 trillion at the end of this year’s third quarter from $39 billion in 1990, according to data from HFR, which tracks the hedge-fund industry. Why would investors flock to hedge funds if other alternative investments were significantly better?
HFRI’s Fund Weighted Composite index, which tracks the performance, of more than 1,400 single-manager hedge funds globally, has produced a 9.1% annualized return after fees from 1990 through the end of this year’s third quarter. That’s barely half the S&P 500’s SPX 17.1% annualized return, including dividends, over the same period.
This comparison isn’t entirely fair: the U.S. stock market has been far more volatile (risky) than the average hedge fund. Management fees also have a big impact on performance; an index-tracking S&P 500 fund costs far less to own than a hedge fund.
But HFRI’s Fund Weighted Composite index even underperformed a balanced stock/bond portfolio (which allocated 60% to U.S. stocks and 40% to intermediate-term government bonds).
Beating the average?
Investors often take the attitude that the best hedge funds should do much better than the overall average. Yet choosing the best hedge fund requires being able to identify it in advance. If that ability did exist, we should see it in the performance of funds-of-hedge-funds — funds that invest in other hedge funds.
These funds-of-funds typically employ large staffs to rigorously analyze the track record of other hedge funds in hopes of identifying those with the greatest probability of producing impressive future returns. Yet, on average, funds-of-hedge-funds produce performance that is significantly worse than the average hedge fund.
This is evident in the chart below, which plots the cumulative returns since 1990 of HFRI’s Fund Weighted Composite index vs. its Fund of [Hedge] Funds Composite Index. As you can see, the Weighted Composite index has performed far better.
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The bottom line? We all hope to find a private-asset class that does significantly better than the public markets. But hope is not a strategy.
Mark Hulbert is a regular contributor to MarketWatch. His Hulbert Ratings tracks investment newsletters that pay a flat fee to be audited. He can be reached at
401(k) plan advisors warm up to alts — with one exception
Elijah Nicholson-Messmer
4 min read
In the months since President Donald Trump ordered a review of ERISA fiduciary guidelines aimed at expanding access to alternative investments, debate and research around these once-niche assets has surged. And 401(k) plan advisors are increasingly warming to them as well, a new study shows.
Roughly 1 in 4 defined contribution plan advisors say they are likely to recommend alternatives in workplace plan offerings, with 10% already doing so, according to a survey from market research firm Escalent.
The study, which polled more than 400 DC plan advisors in September, found that enthusiasm for alternative investments varied sharply by asset class.
Private equity, private real estate and private credit attracted the most attention, with over a third of advisors either already recommending them or extremely interested in doing so.
Hedge funds and venture capital drew more moderate support, while private infrastructure and secondaries lagged, with only about a quarter of advisors expressing enthusiasm.
"We know from previous research that interest in alternative investments has been rising on the retail side," Linda York, a senior vice president in Escalent's Cogent Syndicated division, said in a statement. "These findings show that the same enthusiasm is starting to take hold within the DC plan space. Advisors have traditionally turned to alternatives as a diversification lever for high-net-worth and institutional clients. Now, these options are becoming more relevant for employees across all income levels."
A crypto divide between plan advisors and participants
Across the 400-plus advisors surveyed, just 2% are actively recommending cryptocurrency to plan sponsors, with an additional 17% voicing interest in doing so in the future.
Meanwhile, 9% of plan participants reported already investing in cryptocurrency. And 1 in 4 reported being extremely interested in cryptocurrency investments, Escalent data shows. As a whole, participant interest in crypto is about 74% higher than advisor interest.
Gregg Collier, an investment management consultant at Edgewater Family Wealth in Orlando, Florida, said that while he supports private equity and cryptocurrency investments, both should have modest allocations as part of an overall portfolio.
"There needs to be limits in both private equity and crypto — a percentage maybe, 5% for older participants and 15% for younger ones," he said.
Other roadblocks remain for alternatives adoption
Although advisors are increasingly warming to alternative investments, some of their unique characteristics limit their adoption in workplace plans, advisors say.
When asked what might prompt them to start recommending alternatives — or increase their current recommendations to plan sponsors — DC advisors pointed to lower fees, client requests and greater liquidity.
Other factors, such as diversification, alignment with investment goals and transparency into underlying holdings, also play an important role in advisors' evaluation of alternative investments, survey results showed.
Some of those concerns may be easier to address than others, depending on the particular asset class. Experts say the types of private investments likely to appear in 401(k)s will have greater liquidity than traditional private assets, but compared to public investments, they will generally carry higher fees and offer less pricing transparency.
Plan sponsors, too, are approaching alternative investments cautiously, citing some of the same concerns.
Last month, the Plan Sponsor Council of America surveyed members about adding customized target-date funds that include embedded annuities or private equity. One sponsor noted that alternatives would require "clear safe harbor regulatory guidance, along with products offering the necessary liquidity, cost structure and disclosure information" before they could be considered.
And beyond the investment features themselves, both advisors and sponsors say participant education remains a major hurdle.
"Educating participants on lifetime income or private equity is a challenge," one sponsor explained. "Both are complex, and participants may not fully understand what they are getting into."
A bell that can't be unrung
For all the complexity that alternative investments present, advisors like Kristin Pugh, a partner at Creative Planning in Overland Park, Kansas, say their adoption is likely to grow in workplace plans moving forward.
"To put an alternative investment into a company's qualified plan was kind of unheard of," Pugh said. "Now, that toe has been dipped in the water, and it's not going to go back. … I think private [investments] are just going to eke into other once closed-off investment vehicles. We're going to see it more and more."
"Now, is that a good thing? Not necessarily. Because private investments are not regulated the same way as public [investments]," Pugh added. "They are a little bit of a black box as to what you're getting into. So a lot of caution has to be exercised when looking at those investments. But next year, I think it's just going to be more and more growth in that area."
Private equity is being villainized in the retirement debate — even as it provides diversification and outperforms public markets long-term
Will Dunham is President and Chief Executive Officer of the American Investment Council. ·Fortune·courtesy of American Investment Council
Will Dunham
4 min read
America is in the middle of a retirement crisis. Seventy percent of retirees are worried they don’t have enough money and wish they’d started saving earlier. Even worse, 30% are considering going back to work, because their savings could soon run out. At a time like this, both current and future retirees are counting on their investments paying off.
In August, President Trump issued an executive order that helps savers by expanding Americans’ access to private markets through their 401(k)s, making an asset class that’s long been used by public pension funds and wealthy families more easily available to everyday investors if they so choose. If you were to rely solely on media coverage in recent weeks, however, you’d be left with the impression that expanding options for families and workers is a net negative. In fact, nothing could be further from the truth.
A new report from my organization, the American Investment Council, found that over the long term, private equity as an asset class continually and consistently outperforms the broader stock market and other popular investment categories. This is exactly why investors should be offered the option to invest in private markets. It’s also why, beyond wealthy investors, public servants – including millions of teachers, police officers, and firefighters – have long relied on these investments to keep their pension plans fully funded.
We analyzed the rates of returns across all of private equity, then compared it to returns from other popular asset classes. Our biggest finding is that over 10 years, private equity beats every other major asset class. For instance, private equity’s returns beat the S&P 500 by 3%. That margin makes a huge difference for workers and families over the long haul, giving middle-class investors the higher compounding returns that can deliver their retirement and savings goals.
To put it in perspective: if you invested $25,000 in the stock market over 10 years, with compounding you could expect a return of $85,618; in private equity, that same amount compounded would return an estimated $111,720 – a difference of more than $26,000. Over a 5-year window, private equity remains the market leader, with a nearly 2% higher rate of return than the S&P 500. Crucially, these returns are after fees—dispelling the myth that investors end up paying hidden costs. They don’t.
Media coverage tends to ignore the long-term nature of private markets while over-indexing on the short-term realities of investing. Every kind of investment and asset class has ups and downs. The stock market has good years and bad years, but Americans still invest billions of dollars amid the see-saws. The past year has been especially good for top stocks, with annualized returns of 25% in the S&P 500 compared to private equity’s nearly 10% returns. But private equity isn’t focused on single-year returns. It’s focused on the same thing as most everyday investors: The long-haul. On that key score, private equity’s returns are significantly higher.
This is exactly what everyday investors need from their 401(k)s: consistent, steady, and substantial growth over decades. That’s especially true as investors confront the retirement crisis. We’re talking about people who are saving for golden years, their children’s education, and other financial needs that are far down the road. They usually aren’t focused on the volatility of a year or two. They’re taking a longer view of one or two decades, if not longer. If middle-class investors are showing such fiscal wisdom, why aren’t pundits and other critics?
The critics also ignore that investors aren’t looking to pile every penny into private markets in a “one-size-fits-all” approach. They simply want the option to invest a portion of their portfolio in asset classes that offer upside to traditional equities, in a way that works for them. Many will choose target-date funds that get more conservative over time.
And Americans want access to more options after seeing their choices in the traditional equity markets decline for years. The number of publicly traded companies has fallen by over 50% in the last 30 years—from 8,800 to less than 4,000 – as more companies choose to stay private longer or leave the public markets. By investing in private markets, middle-class investors will be able to diversify their portfolios and get more exposure to successful private companies. This is the definition of investor prudence. It should be praised and encouraged, not second-guessed or stifled.
President Trump is right to expand middle-class Americans’ access to private markets, and the critics are wrong to argue against more sound choices for savers. The evidence is in: Private equity is the kind of diversified, highly profitable investment that Americans should be able to choose as they think about their futures. Private equity hasn’t peaked at all, and it’s an essential part of solving our country’s retirement crisis.
The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.
Trump boasts Americans are ‘crushing’ inflation with bigger paychecks, growing their 401(k). How to capitalize in 2026
Jing Pan
9 min read
Getty Images
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Rising living costs have been a persistent concern for Americans. President Donald Trump says the blame lies squarely with his predecessor — and argues his administration is turning things around.
“We inherited the highest prices ever and we’re bringing them down,” Trump said at a recent rally in Mount Pocono, Pennsylvania (1).
“We're getting inflation — we're crushing it,” he added. “I mean, the only thing that is really going up big, it’s called the stock market and your 401(k).”
There’s some evidence to support parts of that claim. Inflation has cooled meaningfully from its peak. The U.S. consumer price index rose 3.0% year over year in September 2025, well below the 9.1% surge recorded in June 2022 (2).
Still, prices continue to rise — and inflation remains above the Federal Reserve’s 2% target. Critics also note that inflation has picked up (3) from April’s 2.3% reading (4), when Trump’s sweeping tariffs were first announced.
Where Trump’s argument is strongest is in the markets.
The benchmark S&P 500 is up roughly 14% year to date, while the tech-heavy Nasdaq Composite has surged about 17%. Those gains have flowed through to retirement accounts. According to Fidelity, the average 401(k) balance climbed 9% from a year ago to $144,400 in Q3 of 2025 — an all-time high (5).
Trump has also pointed to paychecks.
“You’re getting lower prices, bigger paychecks … you’re getting much higher wages,” he said (1).
Wages are indeed rising, though perhaps not at the pace implied. According to the Bureau of Labor Statistics, Americans’ wages and salaries increased 3.6% over the 12 months ending in September 2025 — roughly keeping pace with inflation, but not dramatically outpacing it (6).
Meanwhile, the Federal Reserve recently cut its benchmark interest rate again, though policymakers cautioned the inflation fight isn’t over. In its latest statement, the Federal Open Market Committee said inflation “has moved up since earlier in the year and remains somewhat elevated (7).”
The good news? History shows that investors don’t have to rely on perfect policy or ideal economic conditions to protect their purchasing power. Across cycles — and regardless of who occupies the White House — savvy investors have found ways to shield themselves from inflation’s bite.
Here’s a look at three of them.
A classic safe haven
When it comes to preserving wealth and fighting inflation, few assets have stood the test of time like gold. Its appeal is simple: Unlike fiat currencies, the yellow metal can’t be printed at will by central banks.
Gold is also considered the ultimate safe haven. It’s not tied to any one country, currency or economy and in times of economic turmoil or geopolitical uncertainty, investors often flock to it — driving prices higher.
Over the past twelve months, the price of the precious metal has surged by more than 50%.
Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, has repeatedly emphasized gold’s importance in building a resilient portfolio.
“People don't have, typically, an adequate amount of gold in their portfolio,” Dalio told CNBC earlier this year. “When bad times come, gold is a very effective diversifier.”
JPMorgan CEO Jamie Dimon has also struck a bullish tone, suggesting that in the current environment, gold could “easily” rise to $10,000 an ounce.
For those looking to capitalize on gold’s potential while also securing tax advantages, one option is to open a gold IRA with the help of Goldco.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties. With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver.
Real estate has also proven to be a powerful hedge. When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts for inflation.
Over the past five years, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index has jumped 45%, reflecting strong demand and limited housing supply (8).
Of course, high home prices can make buying a home more challenging, especially with mortgage rates still elevated. And being a landlord isn’t exactly hands-off work — managing tenants, maintenance and repairs can quickly eat into your time (and returns).
The good news? You don’t need to buy a property outright — or deal with leaky faucets — to invest in real estate today. Crowdfunding platforms like Arrived offer an easier way to get exposure to this income-generating asset class.
The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase and then sit back as you start receiving any positive rental income distributions from your investment.
Another option is Mogul, a real estate investment platform offering fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 A.M. tenant calls.
Each property undergoes a rigorous vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.
Trump’s claim that “the only thing that is really going up big, it’s called the stock market and your 401(k)” may sound like a quip. Still, many market experts agree that stocks can play a role in protecting portfolios during periods of inflation.
Morgan Stanley chief investment officer Mike Wilson recently told Reuters that in the current environment, “high-quality equities and gold are the best hedges (9).”
Stocks can serve as an inflation hedge when companies are able to raise prices to offset rising costs, allowing their revenues and earnings to grow alongside inflation.
Of course, not all stocks are the same. For investors who don’t want the pressure of correctly picking winners and losers, there’s a simpler way to gain exposure to high-quality companies — one endorsed by legendary investor Warren Buffett.
“In my view, for most people, the best thing to do is own the S&P 500 index fund,” Buffett has famously stated (10).
This approach gives investors exposure to 500 of America’s largest companies across a wide range of industries, providing instant diversification without the need for constant monitoring or active management.
If you want to capitalize on this consistency, you could work with SoFi to invest in ETFs like an S&P 500 index fund. You can also pick out individual stocks yourself if you feel confident in making market moves.
The platform is designed to help you learn investing as you go, with real-time investing news, curated content and the data you need to make smart decisions about the stocks that matter most to you. You can even create a personal watch list based on your interests.
This DIY approach allows you to invest with no commission fees in the stocks you believe in, or ETFs and index funds. Plus, for a limited time, you can get up to $3,000 in stock when you fund a new account.
How seniors can take advantage of discounted prices — from health insurance to groceries
Trump’s claim about “higher wages” leaves out a large segment of the population: retirees who are no longer earning a paycheck. And for them, inflation can hit especially hard.
As you get closer to retirement, every dollar starts to matter more. Rising health care costs, uncertain markets and fixed incomes can make it harder to stretch your savings — especially if you’re trying to plan for decades ahead.
You might want to consider joining senior-focused organizations like AARP for discounts on almost everything — from prescriptions and dental plans to travel, entertainment and insurance.
As one of the most trusted organizations for older Americans, AARP not only offers money-saving perks, but they can also help you make informed financial and health decisions. AARP members get access to guides that can help you make the most of Social Security, choose the right Medicare plan and uncover other government benefits — potentially saving you thousands.
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While digital assets like Bitcoin (BTC) have gained immense popularity among the youngsters, the older generation is still hesitant to embrace cryptocurrencies.
Hard-working, middle-aged Americans prefer to put their funds in financial instruments like 401(k) personal retirement accounts.
However, there seems to be a growing acceptance of digital assets among certain sections of the retirement savings industry and the current U.S. administration.
As reported earlier, President Donald Trump had been planning to open up the $9 trillion U.S. retirement market to alternative assets like cryptocurrencies, gold, private equity, etc.
On Aug. 7, Trump went ahead and signed an executive order to allow Americans to allocate their 401(k) retirement savings to alternative assets like cryptocurrencies.
On Oct. 14, Rep. Troy Downing (R-Mont.) introduced a bill to turn Trump’s executive order into law.
Now, it turns out that the CEO of a popular 401(k) provider is also fond of Bitcoin.
Abigail Johnson has been serving as the CEO at Fidelity Investments since 2014. The financial services giant is one of the largest 401(k) plan providers in the U.S.
A Fidelity Investments office in Washington, DC, US, on Friday, March 1, 2024.
The billionaire CEO introduced crypto investments at the 79-year-old firm in 2018.
She recently admitted to personally owning Bitcoin, calling it the “gold standard” of the crypto market.
"I kind of like Bitcoin. I don't own tonnes of coins but I own Bitcoin."
Bitcoin has been around for long, has "persisted," and is "solid," Johnson said.
Fidelity Investments CEO added she is "comfortable" with the asset in the long term and the firm will factor this into its thinking while providing options to its customers.
Johnson made the remarks in a conversation with a16z crypto COO Anthony Albanese at the Founders Summit event in October, though the video got aired on Dec. 4.
Bitcoin was exchanging hands at $92,476.19 at the time of writing, down 1.6% in a day.
Do 'modest' private market returns justify the added complexity?
Elijah Nicholson-Messmer
6 min read
Private equity — once a niche corner of the market reserved for big institutions and wealthy investors — is suddenly showing up in conversations about everyday 401(k) plans.
Interest jumped in August after President Donald Trump signed an executive order telling regulators to make room for private-market investments and even cryptocurrencies inside 401(k)s. News coverage surged, as did Google searches from curious investors.
Still, even with all the newfound attention, researchers, financial advisors and plan sponsors are wrestling with a core question: Does the potential for better returns outweigh the complexity that comes with adding these investments?
That debate has taken on new weight as more data emerges about how private market strategies might actually behave inside a 401(k).
Until recently, most studies leaned on traditional private equity funds — the kind built for institutional investors with long lockups — which don't map neatly onto how defined contribution plans operate. But a new analysis from Morningstar attempts to close that gap by modeling the types of semiliquid, evergreen funds that are more likely to show up in workplace plans.
The study looks not just at performance but also how these vehicles interact with real participant behavior, glide paths and Social Security benefits, offering one of the clearest pictures yet of what private markets might mean for retirement savers.
Working with a sample of more than 265,000 real 401(k) participants drawn from Morningstar's managed accounts database, researchers modeled each participant's savings trajectory using basic inputs — account balance, age, salary, contribution rate and gender — and layered in assumptions about salary growth, employer match rates, IRS contribution limits and Social Security benefits.
From there, they ran everyone through a retirement simulation to establish a "base case," before introducing various allocations to semiliquid private equity and private credit funds.
The results offer consistent, if tepid, support for the role of private markets in investment glide paths.
"Preliminary results suggest that semiliquid private market allocations may improve retirement outcomes across participant cohorts — albeit modestly," wrote Hal Ratner, head of research, investment management at Morningstar. "Importantly, no scenario produced worse outcomes than the base case (without private markets)."
To gauge the impact of adding private market investments, Ratner used a metric he calls the "success ratio." It compares how much income someone can expect to have in a tougher-than-average scenario (the 25th percentile) with how much they'd ideally need in retirement. A ratio of 100% means their income matches their expenses. Anything below 100% signals a shortfall, while anything above 100% suggests they're on track to more than cover their needs.
Sampled investors were then divided into three groups: prepared, vulnerable and critical. Investors with a success ratio of 100% or higher were considered prepared. Those between 100% and 75% fell into the vulnerable category, and anyone below 75% was labeled critical. From these cohorts, Ratner built three representative investor profiles using the median attributes of each group (including income, age, account balance and contribution rate).
Early results are promising, if underwhelming
Ratner ran simulations across the cohort representatives with varying degrees of exposure to private equity and private credit, up to a maximum allocation of 15% of the total glide path.
Across the cohorts, those in the prepared group saw the most significant impact from the inclusion of private investments.
The reason behind that gap points to a critical consideration that research thus far has largely missed: the role of Social Security income.
For vulnerable and critical savers — who rely heavily on Social Security to meet their retirement needs — the guaranteed income stream offsets much of the added return potential that private equity and private credit aim to provide.
In other words, because Social Security already covers a substantial share of their projected retirement spending, incremental gains from private markets have a smaller effect on vulnerable and critical savers' overall success ratios. Prepared investors, by contrast, depend less on Social Security and more on the performance of their portfolios, which is why introducing private market allocations meaningfully boosts their outcomes in the simulations.
"The main benefit of these vehicles may likely be a diversification benefit, which is important, as opposed to astronomical returns," Ratner told Financial Planning. "And that should be factored into the equation."
Early private markets research comes with caveats
The growing effort to add private market investments to 401(k)s reflects a broader trend in investing: giving everyday savers access to strategies once reserved for the wealthy.
But when it comes to adding private investments to 401(k)s, Ratner said everyday savers probably won't get the same kinds of private equity and credit opportunities that affluent investors have enjoyed for years.
The private market vehicles likely to appear in 401(k)s are not the same as the traditional drawdown funds that dominate long-term private equity data, Ratner said. Those older funds follow a clear cycle — capital is called, invested and eventually returned — while the newer semiliquid, or "evergreen," structures designed for defined contribution plans must keep a steady mix of liquid and illiquid assets.
To maintain that balance, these products hold cash or public investments and reinvest paydowns immediately, which pushes managers toward lower-risk, lower-return private holdings than those found in classic buyout funds. The difference, Ratner said, is driven by the very different cash-flow demands of 401(k) plans compared with endowments or defined benefit systems.
That difference affects more than just potential returns; it also limits what researchers can reliably say about how private markets might help 401(k) savers. Historical data for traditional drawdown funds spans decades, but comparable performance records for evergreen funds are almost nonexistent.
Ratner's analysis shows promise for private market allocations, but he also warned that his "level of uncertainty at forecasting private market returns is quite high."
What's behind the push for private markets?
Private assets have become one of the buzziest topics in investing, even as many of the voices in those conversations struggle to grasp how these markets work. So who's behind the push — and what's motivating it?
Asset managers are eyeing the defined contribution market for a mix of reasons, he added. Traditional institutional funding sources have thinned in recent years, and expectations for future private equity returns have cooled.
"There's good reason to believe that, if you're an institutional investor, the types of returns that you've got on PE over the past, let's say 20 years, you're probably not going to get that going forward," Ratner said.
Defined contribution investments also present a massive untapped space for private markets — one with the potential to generate immense revenue.
A recent analysis by accounting firm PwC projected that private market products will overtake actively managed public strategies and make up the majority of revenue across the asset and wealth management industry within five years. Private market assets under management are expected to climb to $26.6 trillion by 2030 as firms race to open the retail pipeline for alternatives.
And the revenue potential is outsized: Private markets are expected to command a far larger share of industry fees than their share of total assets, thanks to fee structures that remain significantly higher than those in traditional public markets.
