US President Donald Trump is preparing to open the $9 trillion US retirement market to investments in cryptocurrencies, gold, and private equity, a plan that would represent a radical shift in the way Americans manage their savings.
Three sources familiar with the matter told the Financial Times that Trump is expected to sign an executive order this week that would open 401k retirement plans to alternative investments other than traditional stocks and bonds.
The sources added that the executive order would require Washington regulators to investigate the remaining hurdles necessary to allow these alternative investments to be included in professionally managed funds used in 401k plans.
The White House said in a statement to the newspaper: "Trump is committed to restoring prosperity to Americans and protecting their economic future. However, any decision should not be considered official unless it comes from the president himself."
401k plans are one of the most popular retirement savings methods for American workers, allowing them to invest a portion of their paychecks in publicly traded, tax-exempt securities. Almost all of these investments are directed to public mutual funds for stocks and bonds
