US. Trump could open up your 401(k) to private equity. Why market experts say it’s a bad idea.
The Wall Street Journal reported on Tuesday that Trump is expected to sign an executive order in the coming days allowing 401(k) plans to invest their assets in private equity. It's a proposal that's raising red flags among some investment experts, who say a 401(k) should typically be a simple and relatively low-risk investment vehicle. Private equity investments, meanwhile, are often concentrated in a small number of portfolio companies, illiquid, and carry valuations that can be difficult to measure day-to-day....
