5 Reasons Changes to Your 401k Would Be a Positive Development

The internet says that Trump is about to turn your 401k into a crypto casino with a 70-year lock-up in private equity, and everyone’s entitled to their opinion—unless that opinion is nonsense. I'm Tyler, a former financial advisor and portfolio manager. Now I make financial content for free so you don’t have to pay for it.

1. More Choices Does Not Equal More Mandates

This isn’t some arranged marriage between you and an overpriced private equity fund. You still pick what’s in your 401k. Don’t want crypto? Don’t buy it. It’s like a buffet; just because there are more options doesn’t mean anybody is forcing you to eat the sushi.

2. More Options Equals Objectively Good

401ks have historically been a walled garden, offering only a handful of plants: index funds, maybe a bond fund, or a target date retirement fund that you don’t understand. More asset classes equal more ways to grow and diversify.

3. Risk Belongs in Retirement Accounts

Yes, alternative assets can be riskier and less liquid, but remember, you’re not touching this money for decades. Historically, private equity and similar asset classes can outperform plain stock indexes over long timelines, and in a retirement account, you have a longer timeline.

4. Non-Correlated Returns

For those in your 50s or who are already retired, more asset classes give you the potential for more non-correlated returns. You could invest in some assets that zig while a stock index zags. Every finance PhD on the planet would nod politely and say, that’s a good thing!

5. Fees Exist Everywhere

Yes, private equity and crypto funds tend to be more expensive, but those fees aren’t magically worse because they’re in your 401k. They’d be the same in an IRA or your brokerage. And remember, you don’t have to buy any of these options if you don’t want to. Your 401k is not being forced into a Bitcoin fund for Trump and his cronies’ benefits; you’re just getting access to more tools in the toolbox. Whether you use them is up to you.

Conclusion

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