Why Trump's Proposal to Add More 401k Investment Options is a Good Thing

Breaking news! Trump wants you to be able to invest in more things in your 401k. And apparently, that means the sky is falling. Here are five reasons why this change is a very, very good thing for you.

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 Options

You would have more options. Nobody's auto-enrolling you into some Cayman hedge fund. You still click the buttons, and if you want, you could ignore every new asset class and stick to your S&P 500 fund.

2. More Access

You want more access. For decades, 401ks have been the blandest salad bar in finance. This is like adding grilled chicken, olives, and an actual dressing with some saturated fat. You don't have to take them, but aren't you glad they're there?

3. Taking on Long-Term Risk

Retirement accounts are the single best place for taking on long-term risk. Risky, illiquid assets can thrive when you give them 20, 30, or 40 years to compound. That’s exactly what a retirement account is for. For instance, private equity has historically beaten public markets over a long enough time horizon.

4. Diversification at Any Age

Even if you're already retired and don’t have 40 years, adding non-correlated assets can reduce your portfolio swings, allowing you to smooth the ride instead of just chasing returns. This is textbook asset allocation.

5. Know Your Fees

Higher fees? That's a you problem. Yes, some of these funds may come with higher fees. They always have in any account type. The trick is to know that before you click buy. And remember, you don't have to buy any of this. It's optionality, not obligation.

Conclusion

So let's stop acting like your 401k is about to be hijacked by a bunch of crypto bros. This means more freedom, more choices, and yes, more responsibility to learn what you're investing in—exactly what grown-ups should want to do in their retirement accounts.

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