Alternative Assets in 401(k)s. Trump’s Executive Order Could Open a New Era for Retirement Planning

Ready to explore how alternative assets like crypto, private equity, or real estate could supercharge your retirement strategy? Schedule a free consultation with Peregrine Financial today and discover how we can help you take full advantage of this potential game-changer.

In a major move for investors, President Donald Trump is signing an executive order to allow alternative assets — including cryptocurrencies, private equity, and real estate — to be included in 401(k) retirement plans.

This executive order instructs the U.S. Secretary of Labor to review fiduciary guidelines around private market investments in 401(k)s and other defined contribution plans. If implemented, it could signal a major shift in how Americans save and invest for retirement — and open the door to a broader range of investment opportunities previously limited to pensions and institutional funds.

Why This Matters

Until now, 401(k) plans have largely excluded private market investments due to concerns about high fees, lack of liquidity, and complex structures. Yet, institutions like pension funds and endowments have long embraced these assets for their growth potential and diversification benefits.

That may be changing.

Alternative asset managers and retirement plan providers have spent years lobbying for this shift. The Trump administration’s renewed push represents a potentially historic win for the private markets — and for savvy investors who want more control and opportunity in their retirement strategy.

What’s Already Happening

• In 2020, the Department of Labor under Trump’s first term signaled that private market exposure could be appropriate in 401(k)s, under specific conditions. That guidance was upheld by the Biden administration.

• As of Q1 2025, Americans collectively hold $8.7 trillion in 401(k) assets — and alternative assets are already making inroads.

• BlackRock recently announced it will launch a 401(k) target-date fund in 2026 with 5% to 20% allocated to private investments.

• Empower, the second-largest retirement plan provider in the U.S., is partnering with firms like Apollo Group to begin offering private market access in select accounts later this year.
  

Even Bitcoin responded to the announcement — seeing a price jump in anticipation of increased institutional adoption.

 What You Need to Know as an Investor

While the opportunity is exciting, alternative assets bring new risks:

• Less liquidity: These investments often come with lockup periods.

• Higher fees: Private equity and crypto funds tend to charge more than traditional mutual funds.

• Transparency: Valuation and reporting standards can vary widely.
  

 Take the Next Step with Peregrine Financial

Whether you’re an individual investor or an employer managing a company 401(k), now is the time to understand what these changes could mean for your portfolio or plan offering. At Peregrine Financial, we help clients navigate the evolving retirement landscape with personalized strategies that blend innovation, security, and long-term growth.

Don’t wait to see how this executive order plays out — schedule your free consultation today and let’s talk about how you can position yourself for the next era of retirement investing.