A recent executive order could give your 401(k) more investment options. Soon, some plans may let you invest in things like private equity, real estate, digital assets, or commodities — not just the usual stocks and bonds.
Why it matters
These alternative investments can potentially offer bigger returns and more ways to diversify your savings. But they can also be riskier, less transparent, and often lock up your money for years. Many people don’t fully understand how they work, so getting professional advice can help.
What you can do
If your plan adds these options, don’t just check the box. Ask questions like:
- How long will my money be locked up?
- What fees and risks are involved?
- What returns can I realistically expect?
Pro tip: A financial advisor, like The Jeffrey Group, can help you navigate alternative investments and make smart choices to grow your wealth — beyond traditional strategies.
