Workers will be able to put up to $24,500 into their 401(k)s and similar workplace retirement accounts in 2026, up $1,000 from this year, the IRS said https://t.co/i9t81jPTV5 ...

Retirement Account Contributions - For 2025, contribution limits are $23,500 for employees under 50, $31,000 for those 50 and older, and $34,750 for those 60 to 63 [2] - Many individuals save approximately 9% of their income towards retirement, including both employee and company contributions [3] - Increasing retirement savings contributions can lower taxable income for 2025 [3] Affordable Care Act (ACA) & Health Savings Account (HSA) - Enhanced advanced premium tax credits may disappear, potentially increasing premiums for those above 150% of the federal poverty line [6] - When choosing an ACA plan, prioritize the network of doctors over the premium cost [7] - HSA limits are $4,300 for individuals and $8,550 for families [8] - HSAs are designed for long-term healthcare savings, similar to an IRA, and should be invested for growth, such as in an S&P 500 index fund [8][9]

Core Insights - Gold continues to reach new record highs as investors increasingly turn to the precious metal for investment and retirement savings [1] Group 1: Gold IRA Overview - Opening a gold IRA is more complex than a traditional IRA, requiring specialty providers as major brokers do not offer them [1] - Gold and other metals must meet specific purity standards, come from approved refiners, and be stored in IRS-approved facilities [2] Group 2: Costs and Fees - Gold IRAs typically incur higher costs than traditional IRAs, including setup, storage, maintenance fees, insurance, and shipping costs [2] Group 3: Tax Implications - Physical gold does not generate interest or dividends, meaning no income is earned while holding it [3] - The IRS treats gold as a collectible, leading to long-term capital gains taxes of up to 28%, which is higher than the 0 to 20% range for stocks [3][4] Group 4: Alternatives to Gold IRAs - Gold IRAs allow funding with pre-tax money, and Roth IRAs permit after-tax contributions, but both require minimum distributions starting at age 73 [4] - For those seeking gold exposure without the complexities of storage, physically backed gold ETFs are a simpler option, incurring only a small fund fee without storage or insurance costs [4][5]

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Group 1 - An executive order by President Trump allows alternative assets like private credit, private equity, and cryptocurrencies in 401(k) and tax-advantaged retirement accounts, aiming to democratize investment access [1] - Retail investors are increasingly interested in alternative assets, with a survey indicating that 21% have considered them and 5% plan to invest, primarily for diversification beyond traditional stocks and bonds [3] - Experts warn that alternative assets may carry complex and less transparent risks, which might not be suitable for all investors [3] Group 2 - Private market funds often promote higher return potential compared to traditional investments, but these can mask high fees, limited liquidity, and inconsistent performance [4] - As of May 2025, only 2 out of 14 private equity and venture capital funds tracked by Morningstar have outperformed the S&P 500 since inception [5] - Typical private equity fees range from 1% to 2.5% in annual management fees, plus performance fees of 20% or more [5]

Core Viewpoint - The recent executive order signed by President Trump aims to increase access to alternative assets, including private equity and digital assets, for 401(k) plan participants, while emphasizing the need for fiduciaries to carefully vet these investment options to protect investors [2][4]. Group 1: Executive Order and Its Implications - The executive order titled "Democratizing Access to Alternative Assets for 401(k) Investors" directs the Department of Labor and the SEC to explore ways to enhance access to alternative assets for defined-contribution retirement plans [2][4]. - The order does not constitute legislation but serves as guidance for potential future regulations, with the Department of Labor expected to propose legislation and invite public comments [1][2]. - The order aims to address excessive fee litigation and provide protections for fiduciaries and plan sponsors considering private market assets [9]. Group 2: Fiduciary Responsibilities and Investor Protection - Fiduciaries of 401(k) plans are required to thoroughly evaluate private offerings, including the capabilities and effectiveness of investment managers, to ensure prudent investment decisions [2][5]. - The executive order emphasizes that plan administrators will continue to be held to a strict fiduciary standard, ensuring that traditional investment options remain available [6][10]. - Managed accounts may provide a way for participants to opt-in to alternative investments, ensuring appropriate disclosures and reducing claims from uninformed participants [4][8]. Group 3: Market Access and Investment Options - The inclusion of alternative assets in retirement plans could provide retail investors with access to higher-yield investments that have traditionally been available only to institutional investors [3][10]. - The order does not mandate that private market assets be offered as standalone investments but recognizes their inclusion in diversified funds managed by sophisticated investment managers [9]. - There is a long regulatory process ahead before any changes to 401(k) plans regarding alternative assets can be expected, indicating that immediate changes are unlikely [10]. Group 4: Diversification and Portfolio Management - Diversification remains a key goal for retirement portfolios, and the inclusion of alternative assets could enhance diversification, potentially reducing risk and increasing returns [8]. - Financial advisors are encouraged to assist investors in determining appropriate allocations that include both traditional and alternative investments [8]. - The traditional barriers to accessing alternative investments, such as scale and costs, may be addressed through the new regulations, allowing for better portfolio diversification [8].

Core Insights - Target-date funds have provided significant benefits to many investors, particularly in terms of simplifying retirement planning and investment strategies [1] - However, these funds are subject to substantial volatility, which can impact investor returns, especially during market downturns [1] Group 1: Benefits of Target-Date Funds - Target-date funds are designed to automatically adjust the asset allocation as the target date approaches, making them appealing for retirement savers [1] - They offer a diversified investment approach, which can help mitigate risks associated with individual stock picking [1] Group 2: Volatility Concerns - The volatility of target-date funds can be considerable, with some funds experiencing significant fluctuations in value [1] - Investors may face challenges during market downturns, as the funds may not perform as expected, leading to potential losses [1]

Investment Choices - Self-directed retirement accounts provide more investment options compared to standard 401(k) and IRA plans [1]

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Market Opportunity - Private asset managers are eyeing the $29 trillion in Americans' retirement accounts [1] - Donald Trump's actions may facilitate private asset managers accessing these retirement accounts [1]