Trump Administration Proposes Rule Allowing Retirement Plans to Invest in Alternative Assets

The Labor Department's proposal would enable fiduciaries of retirement plans to consider a broader range of investment options, including private equity and cryptocurrencies. This move is seen as a step towards providing better long-term returns for retirees, but some experts warn that alternative assets can be more complex and come with higher fees.

Under the proposed rule, plan managers would need to thoroughly evaluate the performance, fees, liquidity, valuation, and complexity of alternative investments before making them available to participants. This approach is designed to protect fiduciaries from lawsuits if they choose to offer these investments in their plans.