Democratizing Access to Alternative Assets for 401(K) Investors
- Author
- Instaread Podcast
- Published
- Fri 08 Aug 2025
- Episode Link
- https://podcasters.spotify.com/pod/show/thevishinator4/episodes/Democratizing-Access-to-Alternative-Assets-for-401K-Investors-e36kh5r
Section 1: Purpose
Explains the disparity between wealthy Americans/public pension participants and ordinary 401(k) investors in accessing alternative assets. Highlights the need to remove regulatory and litigation barriers that prevent broader access to these investments.
Section 2: Policy
Establishes that every American preparing for retirement should have access to funds that include alternative assets, provided a plan fiduciary determines it is appropriate for enhancing long-term, risk-adjusted returns.
Section 3: Democratizing Access to Alternative Assets
Defines “alternative assets” and directs the Department of Labor to reexamine and clarify guidance for fiduciaries under ERISA. Calls for new rules and safe harbors to help fiduciaries prudently balance higher expenses with the benefits of diversification and higher returns. Encourages collaboration with the Treasury, SEC, and other regulators to align policies.
Section 4: General Provisions
Clarifies the order’s legal scope, implementation, and that it does not create enforceable rights.
Notable Quotes:
- “Every American preparing for retirement should have access to funds that include investments in alternative assets…”
- “My Administration will relieve the regulatory burdens and litigation risk that impede American workers’ retirement accounts from achieving the competitive returns and asset diversification necessary to secure a dignified, comfortable retirement."
