President Donald Trump is weighing an executive order which would allow 401k funds to make private-market investments in a huge shakeup to retirement packages.
Trump is expected to announce the new policy soon, but precise details are being kept tightly under wraps and are still subject to change, the Wall Street Journal reported.
The executive order is expected to instruct the Labor Department to begin working with the Securities and Exchange Commission on guidance for employers and plan administrators.
It would represent a huge victory for the private equity industry, which has long been lobbying to gain access to workers’ 401k plans, which currently is worth about $12.5 trillion.
These portfolios have long been primarily comprised of stocks and bonds, largely because they carry less risk than other forms of investment.
Private markets would give accountholders greater opportunity for growth and long-term rewards, allowing investors to capitalize on private equity, venture capital, real estate and hedge funds which aren’t on public exchanges.
Click this link for the original source of this article.
Author: Ray Hilbrich
This content is courtesy of, and owned and copyrighted by, https://www.offthepress.com and its author. This content is made available by use of the public RSS feed offered by the host site and is used for educational purposes only. If you are the author or represent the host site and would like this content removed now and in the future, please contact USSANews.com using the email address in the Contact page found in the website menu.
