'Buyer beware': Legal expert says private equity funds could pose big risk to your 401(k). Here's what you need to know

In August 2025, President Trump signed an executive order aimed at allowing 401(k) account holders to invest in private equity assets. This means that American workers may be able to invest in companies that are not publicly traded on the stock market, such as private real estate investments (1). Supporters of the change say it's a way to expand investment choices for everyday Americans and even the playing field (2), while other experts insist this shift poses a "huge exposure to risk" and question how p ...