Under this order, the Department of Labor and the SEC are tasked with figuring out how six new asset classes can be integrated into 401(k) plans: private market investments, real estate, cryptocurrencies, commodities, infrastructure financing, and lifetime income strategies. That’s a radical expansion compared to the traditional retirement account model. Imagine using your retirement funds to invest in rental properties, back U.S. infrastructure projects, or even tap into crypto exposure—all within your 401(k). These options come with potential upside, including diversification and higher returns, but they also carry more risk. Private markets and crypto aren’t for the faint of heart.

Let’s take a closer look. Private market investing would allow individuals to use their 401(k) to back startups or lend capital for returns—something normally reserved for venture capitalists. Real estate exposure could come through direct ownership or developer lending, offering both appreciation and income potential. Crypto wouldn’t be a free-for-all, but managed funds or ETFs could give your portfolio a digital edge. Commodities like gold could bring tangibility to your savings strategy, while infrastructure financing might provide steady, government-backed interest. Lastly, lifetime income products like annuities or longevity risk pools could help manage retirement risk with a focus on guaranteed income.

But this isn’t just about what you can invest in—it’s about who controls the money. Wall Street has long had a chokehold on 401(k) investing, charging fees regardless of how your portfolio performs. This executive order threatens to break that grip. For example, a 1.2% annual fee on a $1,000 monthly contribution over 40 years, even with a 10% return, adds up to $1.2 million in fees. That’s a staggering loss—money that could have been yours. With these new options, more of your dollars stay in your pocket, and less go to fund manager bonuses.

Employers will play a huge role in this transition. Once the Department of Labor and SEC finalize how these new asset classes can be included, companies offering 401(k)s will decide whether to allow them. That decision could influence where people choose to work, especially younger employees looking for more dynamic investment options. Flexible retirement plans could become a key differentiator in hiring, making job markets more competitive and benefit-focused.

Of course, there are real risks. Private market investments lack the transparency of public markets. Cryptocurrencies can swing wildly. Real estate requires smart management. Even infrastructure bonds, while backed by the government, don’t offer sky-high returns. Still, the shift is significant—this move empowers investors to diversify, potentially reduce fees, and engage more directly with where their money goes. That’s a massive cultural and financial shift.

And we can’t ignore the broader economic context. The U.S. government is currently spending nearly $1 trillion per year just to cover interest on its national debt. Tapping into retirement accounts for infrastructure funding could relieve some fiscal pressure, but it also creates new dependencies. If investors step in to back federal projects, they become stakeholders in government solvency. It’s a clever workaround, but it raises long-term questions about sustainability.

Ultimately, President Trump’s executive order signals a major change in how we think about retirement. It’s a bet on financial freedom, decentralization, and investor empowerment—and a direct challenge to the traditional Wall Street model. Whether this creates more opportunity or more risk depends on how the details shake out, but one thing’s clear: your 401(k) might be about to get a whole lot more interesting.

Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.

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