"The proposal aims to remove long-standing barriers that have kept private equity, private credit, and digital assets out of most retirement portfolios, reflecting a growing interest in alternative investments."
"Supporters argue the change could improve long-term returns, as broader access to private markets can help diversify retirement portfolios, according to large asset managers like Blackrock and Apollo."
"Critics warn of real risks, stating that private assets and cryptocurrencies can be volatile, harder to value, and less liquid than traditional investments, raising concerns about retirement savings."
The Department of Labor's new proposal would permit 401(k) plans to invest in private equity, private credit, and digital assets. This initiative seeks to eliminate barriers preventing these investments in retirement portfolios. While it does not mandate inclusion of such assets, it provides guidelines for fiduciaries to evaluate fees, liquidity, performance, and risk. Supporters believe this could enhance long-term returns, while critics caution about the volatility and liquidity risks associated with private assets and cryptocurrencies, especially amid current market uncertainties.
Read at news.bitcoin.com
Unable to calculate read time
Collection
[
|
...
]