President Donald J. Trump is reportedly preparing to issue an executive order that will impact the potential for Americans to invest in their retirement by opening up 401(k) plans to private equity investments.
According to the Wall Street Journal, Trump could soon allow the retirement funds to make private-market investments, a rumored change that could potentially result in higher returns for average investors.
Exclusive: 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 https://t.co/xzejnDUta9
— The Wall Street Journal (@WSJ) July 15, 2025
The outlet cites unnamed sources for its reporting that Trump will direct the U.S. Department of Labor and the Securities and Exchange Commission (SEC) to develop guidance for employers and retirement plan administrators.
“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,” the WSJ reported on the policy shift, although few details were provided with the sources indicating that the new policy is still being finalized and are subject to change.
If the new policy comes to fruition, it will be a massive win for the private-equity industry, which has lobbied to gain access to the 401(k) plans of workers, a pot of money worth around $12.5 trillion, according to the Daily Mail.
Private-market investments are vehicles that aren’t traded on public exchanges and typically include hedge funds, private equity, venture capital, and real estate.
The investments could allow ordinary workers to reap larger returns, although it would also come with a potential downside as private investments are considered to be riskier than traditional stocks and bonds due to their reliance on external factors, making it theoretically possible that Americans’ hard-earned retirement savings could be adversely impacted.
News of the impending Trump executive order was cheered by Managed Funds Association (MFA) CEO Bryan Corbett, who heads up the trade group that represents the global alternative asset management industry.
“Expanding access to alternative investments in 401(k) retirement plans will provide more Americans with the diversification and investment options needed to build wealth and save for successful retirement,” he said.
“We look forward to working with the Trump Administration on an approach that protects investors and empowers retirement plan sponsors to confidently grant access to alternative investment options, with a variety of liquidity profiles, that are well aligned with long-term retirement goals,” Corbett added.
“Proponents argue that allowing 401(k) plans to invest in private markets would give savers a broader range of investment choices and the potential for greater long-term returns,” according to the New York Post. “However, the higher risks and steeper fees associated with such assets have raised concerns. Critics warn that plan administrators could face increased legal exposure if investments perform poorly or fees eat into retirement savings.”
Any such move would likely draw fierce criticism from Democrats.
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Chris Donaldson is an ordinary American who is concerned about rampant corruption as well as the ongoing attacks on our way of life by those who have contempt for our hard-earned freedoms. A Navy veteran, he has been a frequent contributor to conservative websites and resides in Florida.
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