Trump making 401s more hazardous

Project 47 - The Trump administration is pushing a major change that could radically reshape how Americans save for retirement.  Last week, the Department of Labor filed a rule that would allow 401(k) plans to invest in high-risk assets, including cryptocurrency, private equity, hedge-fund-style products, private credit and other alternative investments once reserved for the wealthy. The White House has framed it as “choice” and “liberation” for workers, but the move could turn ordinary Americans’ retirement savings into a high-stakes gamble, exposing millions to volatility and potential losses they may not be prepared to handle. The 401(k) was created in the 1980s as a way for employees to gain direct exposure to the stock market. Unlike traditional defined-benefit pensions, which guaranteed a fixed income in retirement, 401(k)s shifted both responsibility and risk onto the employee. A well-diversified portfolio of equities, bonds and mutual funds allows for long-term growth and relative stability, adding high-risk alternative assets to the mix would fundamentally change the dynamics of retirement investing, potentially exposing savers to significant losses.