Former President Donald Trump is set to sign an executive order that could significantly alter how Americans save for retirement. The order would allow the inclusion of cryptocurrencies, real estate, and private equity in 401(k) plans.
Changes to 401(k) Retirement Plans
The order aims to expand options for citizens wishing to invest in a more diverse array of assets within their retirement savings. This decision is driven by a growing demand for flexible financial strategies that reflect modern market realities.
Review of ERISA Guidelines
The order also directs the Department of Labor to revisit its guidance under the Employee Retirement Income Security Act (ERISA). Outdated rules restrict the types of investments permitted in retirement plans, and their revision could open the door for crypto and real estate-linked products.
SEC and Treasury Analysis
In addition to the Department of Labor, the process will involve the Securities and Exchange Commission (SEC) and the U.S. Treasury. These agencies will assess the necessity of updating existing financial regulations to accommodate new investment options.
Thus, the order Trump intends to sign may revolutionize how Americans approach building retirement wealth by incorporating cryptocurrency and real estate into 401(k) plans.
