Summary
A new executive order could allow fund managers to include private equity investments in 401(k) retirement plans. This change might offer legal protection to those managers, but it introduces both risks and benefits for people investing in these retirement accounts.
Key Facts
- A 401(k) is a retirement savings plan typically investing in public companies.
- Private equity involves investing in private companies, not listed on stock exchanges.
- Private equity is considered high-risk, with potentially large gains or losses.
- President Trump is expected to sign an executive order about private equity in 401(k) plans.
- The order aims to offer legal protection to fund managers who add private equity to retirement portfolios.
- The potential benefits and risks of including private equity need careful consideration.
- The podcast episode discusses these issues and related topics like investment rules and financial strategies.