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New rules could expand what Americans hold in their 401(k)s and other tax-advantaged retirement accounts.
An executive order signed by President Donald Trump (1) has opened the door for certain “alternative assets” like private credit, private equity and cryptocurrencies to be included in 401(k)s.
Proponents say this shift could democratize access to investment opportunities traditionally reserved for institutions and the wealthy. Critics warn that these assets carry complex risks that may not be properly understood by the average investor.
Here’s how America’s retirement landscape could change — and how to protect your own portfolio from unnecessary risk.
Traditionally, some alternative assets — such as private equity and hedge funds — were restricted to “accredited investors” who either had a net worth of more than $1 million (excluding their primary residence) or annual income exceeding $200,000, according to the U.S. Securities and Exchange Commission (SEC). (2)
However, the alternative asset landscape has changed over the years. And retail investors are showing growing interest in these investments. A survey by market research firm Opinium found that 21% of retail investors have considered alternative assets, and another 5% plan to invest in them. (3)
The most common reason was diversification. Many investors want to move beyond traditional stocks and bonds in pursuit of higher returns.
Some advisors even say that the traditional 60/40 mix of stocks and bonds should be revised to 50/30/20, with the 20% being made up of alternative assets. The idea is that alternative assets provide a little bit of resilience against market upheaval, which stocks and bonds can be more susceptible to.
For instance, gold is often viewed as an alternative asset that can offer your portfolio greater stability if stocks are shaky. The precious yellow metal is also on a historic bull run, with the spot price breaching $4,000 per ounce in early October. (4)
With a gold IRA through Thor Metals, you can invest directly in physical precious metals, like gold, rather than stocks and bonds.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.
To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.
Another popular alternative asset is real estate. But you don’t have to buy property outright to benefit from the real estate market.
One option is tapping into this market by investing in shares of vacation homes or rental properties through Arrived.
Backed by world-class investors including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream without the extra work that comes with being a landlord of your own rental property.
Start by browsing through their selection of vetted properties, each picked for their potential appreciation and income generation. Once you choose a property, you can start investing with as little as $100, potentially earning quarterly dividends.
If investing in real estate through rentals doesn’t appeal to you, another alternative asset avenue is commercial real estate. For years, direct access to the $22.5 trillion commercial real estate sector was limited to a select group of elite investors — until now.
First National Realty Partners (FNRP) allows accredited investors to diversify their portfolio through grocery-anchored commercial properties, without taking on the responsibilities of being a landlord.
With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to triple net leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.
Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties.
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Private market funds, which pool money from investors into assets that are not publicly traded on a stock exchange, are another alternative asset class. Private market funds often advertise higher return potential than traditional stocks and bonds. But in practice, those lofty targets can obscure high fees, limited liquidity and inconsistent performance.
As of May 2025, only two of the 14 private equity and venture capital funds tracked by Morningstar had outperformed the S&P 500 since inception. (5) Meanwhile, typical private equity fees include 1% to 2.5% in annual management fees — plus 20% or more in performance fees, according to Hamilton Lane. (6)
Unlike public markets, private assets lack a deep secondary market, making it difficult to exit investments. “If there’s a desire to pull out of private equity, there isn’t a way to actually sell that company or sell shares — there’s just no market for it,” said Charles Rotblut, vice president of the American Association of Individual Investors, in an interview with CNBC. (7)
The risks of alternative assets go beyond their impact on individual portfolios. A report from the Institute for Economic Policy Research (SIEPR) warned that broad retail access to illiquid and opaque assets could create a “systemic risk machine,” increasing the likelihood of financial instability in future downturns. (8)
For most investors, sticking with low-cost index funds will remain a sound strategy. However, if you’re keen on exploring private assets, it’s worth consulting with a financial advisor to ensure they fit within your overall financial plan.
Lisa Kirchenbauer, founding partner and senior advisor at Omega Wealth Management, told NPR (9) a sensible approach is to allocate a small portion — around 5% to 10% — of your portfolio to these asset classes.
This allows you to pursue diversification benefits while limiting potential risks to your retirement savings.
For more personalized advice on whether alternative assets are right for you, try the Advisor.com team. They can connect you with a financial advisor suited to your needs and based in your area. All of their advisors are pre-vetted fiduciaries, meaning that they have a legal obligation to act in your best interest.
After inputting your ZIP code to find a nearby financial professional, you can set up a free call with no obligation to hire to make sure they’re a good fit for you.
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The White House (1); SEC (2); Opinium (3); APMEX (4); Morningstar (5); Hamilton Lane (6); CNBC (7); Institute for Economic Policy Research (SIEPR) (8); NPR (9)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.