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Recently, a far-reaching executive order was signed at the White House in the United States. This order aims to open the door to alternative asset investments for ordinary American citizens, providing more options for their retirement planning.
For a long time, alternative asset investment has been the exclusive domain of the wealthy and government officials. However, over 90 million ordinary Americans participating in employer-sponsored fixed contribution plans are unable to enjoy the potential benefits that this investment channel offers. This inequality has attracted widespread attention.
The introduction of the new policy aims to break this situation. The trustees of defined contribution retirement plans, such as the 401(k) plan, should originally assess alternative assets like private equity products with caution to ensure the safety of retirement account funds. However, the cumbersome litigation and the overly strict guidance from the Department of Labor have made trustees hesitant in their decision-making, indirectly depriving millions of Americans of the opportunity to benefit from investments in alternative assets.
It is worth noting that the proportion of alternative assets in public pensions and fixed income retirement plans is gradually increasing. These assets not only provide competitive returns but also achieve portfolio diversification. However, excessive regulatory restrictions hinder the promotion of this trend on a broader scale.
The signing of this executive order marks the official recognition by the U.S. government of the importance of alternative asset investment in retirement planning. This move is expected to bring more security and wealth growth opportunities to the retirement lives of ordinary Americans, while also injecting new vitality into the financial markets.
Nevertheless, experts remind investors to carefully assess risks and allocate assets reasonably. As policies are gradually implemented, we can expect to see more innovative retirement investment solutions emerge, bringing more choices and security to the retirement lives of Americans.