Trump’s 401(k) changes could dramatically impact your retirement account in 2026. Here's what you need to know

Core Insights - The article discusses the growing interest in alternative assets among retail investors, highlighting a shift from traditional stocks and bonds to include assets like gold, private equity, and real estate as part of investment portfolios. Group 1: Alternative Assets Overview - Gold is currently experiencing a historic bull run, with spot prices reaching approximately $4,300 per ounce in October [1] - A survey by Opinium indicates that 21% of retail investors have considered alternative assets, with an additional 5% planning to invest in them [2] - The traditional investment strategy of a 60/40 mix of stocks and bonds is being reconsidered, with suggestions to adjust it to 50/30/20, incorporating 20% in alternative assets for added resilience [1] Group 2: Access and Regulation - Historically, alternative assets like private equity and hedge funds were limited to accredited investors, defined as individuals with a net worth exceeding $1 million or an annual income above $200,000 [3] - An executive order signed by President Trump in August allows certain alternative assets, including private credit and cryptocurrencies, to be included in 401(k) plans, broadening investment options for Americans [5] Group 3: Investment Opportunities - Gold IRAs enable investors to hold physical gold or gold-related assets in retirement accounts, combining tax advantages with the protective benefits of gold [6] - Real estate is highlighted as another popular alternative asset, with platforms like Arrived allowing investments in shares of vacation homes or rental properties, starting from as little as $100 [9] - First National Realty Partners (FNRP) offers accredited investors the chance to invest in grocery-anchored commercial properties with a minimum investment of $50,000, providing essential goods to communities [12] Group 4: Risks and Considerations - Private market funds, while promising higher returns, often come with high fees, limited liquidity, and inconsistent performance, with only two out of 14 private equity and venture capital funds outperforming the S&P 500 since inception as of May 2025 [14] - The potential systemic risks associated with broad retail access to illiquid and opaque assets have been highlighted, raising concerns about financial stability during downturns [16] - Experts recommend that investors consider allocating a small portion (5% to 10%) of their portfolios to alternative assets to balance market resilience with liquidity risks [17][18]