Your 401K Will Never Be The Same
Published: 2025-08-18
Status:
Available
|
Analyzed
Published: 2025-08-18
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
An executive order signed by President Trump aims to alter investment options and potential returns within 401k plans.
"President Trump just changed the way that your 401k works. This new executive order is working to change where you can invest your money in your 401k and what types of returns you can see."
Pending
The 'Democratizing Access to Alternative Assets for 401k investors' executive order was signed on August 7, 2025, by President Trump.
"On August 7th, 2025, President Trump signed the Democratizing Access to Alternative Assets for 401k investors executive order."
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The executive order aims to enable 401k investors to invest in alternative assets for potentially higher returns and improved diversification.
"The executive order is designed to allow 401k investors to access alternative assets for better returns and diversification."
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The executive order identifies six categories of alternative assets that may be added to 401k investment options.
"the executive order goes on to highlight six different types of potential assets they're looking to add into 401ks."
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Real estate, including direct/indirect ownership and debt instruments secured by real estate, is identified as a potential alternative asset for 401k investments.
"The second type of alternative asset is real estate. And what it says is direct and indirect interest in real estate, including debt instruments secured by direct or indirect interest in real estate."
Pending
Cryptocurrencies, via actively managed investment vehicles focused on digital assets, are listed as a potential alternative asset for 401k investments.
"number three. This is the one that caught all the news, which is cryptocurrencies. Here's what it says. To invest in holdings in actively managed investment vehicles that are investing in digital assets."
Pending
Commodities, including direct investment in physical gold or indirect exposure via ETFs, are identified as a potential alternative asset for 401k investments.
"Number four is direct and indirect exposure to commodities. So this would be something like investing in physical gold that you would be able to buy the physical gold with your 401k or get indirect exposure to the physical gold but maybe buying gold contracts through ETFs giving exposure to commodities."
Pending
Lifetime income investment strategies, such as longevity risk sharing pools and more annuity options, are being considered for 401k investments to provide income streams.
"And then option number six is income. More specifically, it says lifetime income investment strategies, including longevity risk sharing pools. Essentially, it's opening the door to more types of annuities that could pay out income through your 401k that you could invest in."
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If the proposed 401k changes are implemented, it could significantly alter investment strategies, fee structures, and potential returns by allowing investment in a wider range of options, including riskier ones, fostering greater investment independence away from Wall Street.
"it could change the way that you invest your money for retirement. It could change the way that you pay fees and it could change the types of returns that you get because it can allow you to invest in much other options, some of which are more riskier than others, which means it could give regular people the option to be more independent with their investments without the hands of potentially Wall Street."
Pending
The US government is characterized as entering a 'debt death spiral' due to a chronic rise in debt relative to income, with annual interest payments approaching a trillion dollars.
"America is entering a debt death spiral. When debts rise relative to incomes on a chronic basis, right now for the US government it's almost a trillion dollars a year that goes to interest payments."
Pending
An executive order signed by President Trump is expected to alter 401k investment options and potential returns.
"President Trump just changed the way that your 401k works. This new executive order is working to change where you can invest your money in your 401k and what types of returns you can see."
Pending
President Trump signed an executive order on August 7, 2025, aimed at increasing alternative asset access for 401k investors.
"On August 7th, 2025, President Trump signed the Democratizing Access to Alternative Assets for 401k investors executive order."
Pending
A new executive order aims to enable 401k investors to invest in alternative assets for improved returns and diversification.
"The executive order is designed to allow 401k investors to access alternative assets for better returns and diversification."
Pending
The executive order proposes adding six new categories of potential assets to 401k investment options.
"the executive order goes on to highlight six different types of potential assets they're looking to add into 401ks."
Pending
The Department of Labor and the SEC are tasked with determining how to incorporate new asset types into 401k plans.
"it's saying is that the Department of Labor and the SEC need to work together to figure out how we can add these types of things into your 401k."
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Private market investments (equity, debt, etc., not on the stock market) are proposed as a new asset class for 401k plans.
"alternative asset number one that this executive order highlights are private market investments. These are investments in equity, debt, or other financial instruments that are not on the stock market."
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401k funds may be usable for investing in pre-IPO startups.
"if this goes through, you could use your 401k money to invest in startups that are not on the stock market."
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Real estate investments, both direct and indirect, including debt, are identified as a potential new alternative asset for 401ks.
"The second type of alternative asset is real estate. And what it says is direct and indirect interest in real estate, including debt instruments secured by direct or indirect interest in real estate."
Pending
Actively managed investment vehicles holding digital assets (cryptocurrencies) may become an investment option within 401ks.
"To invest in holdings in actively managed investment vehicles that are investing in digital assets."
Pending
401k investors may gain direct or indirect exposure to commodities like gold, potentially allowing direct purchase of physical gold or investment through ETFs.
"direct and indirect exposure to commodities. So this would be something like investing in physical gold that you would be able to buy the physical gold with your 401k or get indirect exposure to the physical gold but maybe buying gold contracts through ETFs giving exposure to commodities."
Pending
401k funds could be used to lend to the U.S. government for infrastructure projects, with interest paid back to the investor.
"infrastructure financing and what that means is that the United States government has a lot of infrastructure projects going on that they just can't fund that they have to borrow money to do. And what this proposal is saying is that you could use your 401k money to lend to the United States for these specific infrastructure projects and in exchange you'll be paid back with interest."
Pending
New types of annuities offering lifetime income and longevity risk sharing will potentially be available for investment within 401ks.
"lifetime income investment strategies, including longevity risk sharing pools. Essentially, it's opening the door to more types of annuities that could pay out income through your 401k that you could invest in."
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While asset management fees in 401ks have decreased over recent decades, investors should remain aware of these costs.
"over the last couple of decades, we've finally begun to see some of these asset management fees fall, but you should still understand what the cost is and how this could play a part into that."
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Over a 40-year investment horizon with a 1.2% fee, $1.2 million in fees would be paid, reducing a $5.8 million potential total to $4.6 million.
"So, what happens after these 40 years is you're going to see your money grow to $4.6 million, which is pretty good. I mean, I don't think anyone's going to say bad things to $4.5 million. But the other part that you want to understand is that you're also going to be paying over the course of your career $1.2 million in fees to Wall Street, which means without the fee, you would have had $5.8 million, but after fees, you're now left with $4.6 million."
Pending
A new proposal allows for 401k investments to bypass traditional Wall Street asset managers, potentially impacting their business model.
"But now there's a proposal that you could potentially invest money without Wall Street through your 401k, which wouldn't make those asset managers very happy because your money with a 401k gets tied up."
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The U.S. government is facing a debt crisis, with interest payments approaching a trillion dollars annually due to chronic debt increases relative to income.
"America is entering a debt death spiral. When debts rise relative to incomes on a chronic basis, right now for the US government it's almost a trillion dollars a year that goes to interest payments."
Pending