Trump Executive Order to Help Open Up 401(k)s to Private Markets

Thursday, July 17, 2025

President Trump is expected to sign an executive order in the coming days designed to help make private-market investments more available to U.S. retirement plans, according to people familiar with the matter.

Posted by jpw at 09:32 PM | 14 COMMENTS | permalink | Comment on This Entry |

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FT Exclusive: The US president is expected to sign an executive order that would open up 401k plans to alternative investments beyond traditional stocks and bonds, according to people briefed on Trump's plans. https://on.ft.com/40rLYfL

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-- Financial Times (@financialtimes.com) Jul 17, 2025 at 5:04 PM

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Anybody else see the writing on the wall for the pre 60 yo crowd?

401k is about to be subjected to pump and dumps.

#1 | Posted by fresno500 at 2025-07-16 03:17 PM | Reply | Newsworthy 5

Just allowing the owners of their 401k, more choices. My wife's 401k has a varsity of mutual fund choices and the ones we picked have done decently with a high yield bond fund, utilities fund, large cap, medium cap and small cap funds, as well as emerging markets funds, etc. No problem with additional individual companies being offered as still up to the owners of the 401k.

#2 | Posted by MSgt at 2025-07-16 04:25 PM | Reply

I have no problem with more choices.

The Trustees, however, have a fiduciary duty to only provide quality offerings. They're legally bound to refuse to offer junk.

This sounds like junk for junk's sake.

#3 | Posted by Danforth at 2025-07-16 05:13 PM | Reply

Financial deregulation for the sake of "growth" never works out for the targets.

Thats why they're targeted.

VC/PE cultures see a pot of cash they don't own and they want it.

And with our current government, they'll get it.

#4 | Posted by jpw at 2025-07-16 09:19 PM | Reply

"As long as we can invest our entire retirement fund in Trump Bucks, we'll be just fine."
-MAGATs

#5 | Posted by censored at 2025-07-16 09:42 PM | Reply

VC/PE cultures see a pot of cash they don't own and they want it.

Vultures.

Stupid phone.

#6 | Posted by jpw at 2025-07-16 11:18 PM | Reply

This is great news if you are holding crypto because suddenly there's a new way for people to demand crypto.

This is also true of when we moved away from Pensions and into 401(K)s.

If you were already holding stocks, congratulations, now every worker in America with a 401(k) is buying the stocks you already own, and driving up the price.

401(K)s are a multi-generational wealth transfer to the rich.

#7 | Posted by snoofy at 2025-07-17 10:17 PM | Reply

And practically nobody will come right out and just explain what's happening that way.

Some ------- will say "yeah but your investments went up in value too."
As if that makes it fair that you subsidized their gains.
It's like telling a Slave, "We taught you Christianity."

#8 | Posted by snoofy at 2025-07-17 10:19 PM | Reply

"This sounds like junk for junk's sake."

And with Trump's imprimatur?!?
So out of character ...
Oh, please, say it ain't so.

#9 | Posted by Doc_Sarvis at 2025-07-18 05:06 AM | Reply

Sooner or later, as the additional wealth poured into Crypto makes it rise to unimaginable heights, well, it will end and then comes the dump part of the pump and dump scheme.

#10 | Posted by Hughmass at 2025-07-18 08:03 AM | Reply

It's just normal Republican logic. Yes, this is going to benefit the rich incredibly and there is no hiding that at all. However, as usual it will help the average person but only if they know how to take advantage of it and can take the risk. In other words, very few average people (by proportion) will see any benefit to this.

What really shocks me about this decision though is the tax implications. I haven't read the full details yet but I want to know the estimates on tax income for the government. 401k gains are not taxed, so it will be like the IRA situation in which you can add in a certain amount to shield from taxes. Which means, sometime in the next 3 or so years we are going to see both parties trying really hard to increase that cap significantly in order to take advantage of more shielding. Which, again, really helps the average person who knows how to take advantage of it but not nearly as much as the rich.

#11 | Posted by humtake at 2025-07-18 11:27 AM | Reply

Lewzer quotes:

"Why Is @BarackObama constantly issuing executive orders that are major power grabs of authority?"

"The country wasn't based on executive orders,"

"Right now, Obama goes around signing executive orders. He can't even get along with the Democrats, and he goes around signing all these executive orders. It's a basic disaster. You can't do it."

For those keeping score, Lewzer has signed more (390) Executive Orders than Obama did in 8 years (277). He has signed more in the last 7 months (170) than Joe Biden did in 4 years (162).

#12 | Posted by REDIAL at 2025-07-18 11:42 AM | Reply | Newsworthy 1

#11 | Posted by humtake

So what problem is this going to solve? The rich not having enough money? The deficit not being big enough?

#13 | Posted by SpeakSoftly at 2025-07-18 12:25 PM | Reply

401k gains ARE taxed, idiot. When you withdraw the money. ------- imbecile.

#14 | Posted by LegallyYourDead at 2025-07-18 12:46 PM | Reply