A powerful shift is underway. President Trump has signed a groundbreaking executive order to open up alternative assets like private equity, commercial real estate, and crypto to 401(k) plans. This bold move challenges the status quo, directing federal regulators to re-evaluate outdated rules and democratize wealth. This isn’t just a policy change; it’s an opportunity for millions of Americans to build stronger, more diversified financial foundations.
President Trump last Thursday, August 7th 2025, signed an executive order to ease access to alternative assets like Private Equity, Commercial Real Estate and Crypto into 401 (k) plans. The directive asks the Labor Department to reevaluate guidance around alternative assets in retirements plans subject to ERISA within six months.1 This represents a major victory looking to tap some of the roughly $12.5 trillion held in those retirement accounts. The department is also directed to clarify the government’s position on the fiduciary responsibilities associated with offering asset allocation funds that include alternative holdings. Trump also required Labor Secretary Lori Chavez-DeRemer to work with counterparts at the Treasury Department, Securities and Exchange Commission and other federal regulators to determine whether rule changes should be made to assist in the effort. The SEC is asked to facilitate access to alternative assets for participant-directed retirement plans. It’s the biggest move yet by the Trump administration to bring private assets to defined-contribution accounts.
Top officials in Washington had weighed a directive for months that would relax legal concerns that have long kept alternative assets out of most worker defined-contribution plans. Retirement portfolios are mostly concentrated in stocks and bonds in part because corporate plan administrators are reluctant to venture into illiquid and complex products. Elements of the effort mirror measures taken during Trump’s first term, when the Labor Department issued guidance that retirement plan administrators wouldn’t violate their responsibilities if they included private equity in their portfolios. That was later rolled back under former President Joe Biden.
Alternative and traditional asset managers are eager to grab a slice of the defined-contribution market, which they see as the next frontier of growth. Many institutional investors, including US pension funds and endowments, have reached internal limits of what they can put into private equity amid a broader slowdown in dealmaking and a lack of distributions to clients. Proponents argue that opening 401(k)s to private markets products would offer savers more investment options and greater potential upside. But with that comes potentially higher risk, illiquidity and bigger fees that may leave retirement plan administrators vulnerable to lawsuits.
For individuals that have a legacy 401(k) plan, now is an ideal time to explore the benefits of converting or rolling it over into an IRA with Trajan Wealth. We can help you gain access to a broad suite of investment alternatives that are garnered around a comprehensive curation of private market opportunities, rather than mass distribution products that are often utilized to raise inordinate amounts of AUM.
Trajan Wealth has provided private investment opportunities to qualified investors for years. Unlike many firms that primarily offer structured “fund-of-funds” products, often with layered fees and limited transparency, Trajan Wealth takes a different approach:
- Curated Opportunities: We source and vet private investment opportunities through our extensive network.
- Transparent Fees: We work to reduce management and performance fees, passing more value to clients.
- Lower Minimums: Our offerings allow our qualified clients to participate in multiple deals, thereby increasing diversification.
- Ongoing Monitoring: We actively track performance and developments, avoiding the passive oversight often seen in fund-of-funds structures.
This direct and selective approach provides greater alignment with our client’s long-term goals, compared to the one-size-fits-all solutions likely to appear in 401(k) plans.
Our teams highly curated and differentiated approach is based primarily on quality rather than maximizing management fees.
Key Takeaways
- Vast Untapped Market: The private markets represent a massive investment universe, with an estimated 33 million businesses in the U.S. compared to only about 4,700 publicly traded companies. This executive order aims to expand access to this traditionally exclusive market, potentially offering new diversification opportunities.
- The Power of Control with an IRA: While 401(k) plans may begin to offer alternative assets, rolling over an old 401(k) into an IRA can provide a participant with greater control and access to a broader range of investment options. This puts you in the driver’s seat of your retirement strategy.
- A Need for Expert Guidance: Private investments often involve unique risks, including higher fees, less liquidity, and more complex valuation processes than public market assets. Navigating this new landscape requires a knowledgeable partner who can help you understand the details and perform the necessary due diligence to make informed decisions.
- Trajan Wealth’s Differentiated Approach: Trajan Wealth is positioned to help clients navigate this new frontier by offering a curated and transparent approach to private investments. We prioritize quality and thorough underwriting over simply maximizing assets under management, focusing on solutions rooted in data and research.
This executive order is a powerful call to action, offering new opportunities but also new challenges for plan fiduciaries. At Trajan® Wealth, we see this as our moment to shine. We are prepared to guide our clients through this new frontier with a highly curated, differentiated approach to alternative investments. Our focus is on quality deals that align with our clients’ best interests, empowering them with the expertise to triumph in this evolving market and secure their financial future.
