Retirement Is Being Rewritten & Here’s What That Means for You

What Just Happened?

On August 7, 2025, President Donald Trump signed a landmark executive order titled “Democratizing Access to Alternative Assets for 401(k) Investors.”

This order directs the Department of Labor (DOL), Securities and Exchange Commission (SEC), and U.S. Treasury to revisit long-standing restrictions on what investments can be included in workplace retirement plans.

The key change? Expanding 401(k) and other defined-contribution plans to allow “alternative investments” — asset classes that, until now, have been mostly reserved for wealthy individuals, institutional investors, or those with specialized accounts like self-directed IRAs.

This includes:

• Private Equity: ownership stakes in private companies
  
  
• Real Estate: commercial and residential projects
  
  
• Cryptocurrencies & Digital Assets
  
  
• Private Credit: direct lending to businesses
  
  
• Other Alternative Strategies with lower correlation to the stock market
  
  

The stakes are enormous, the U.S. defined-contribution market holds more than $12 trillion in retirement assets. Even a small shift of those funds toward alternatives could reshape the retirement investing landscape.

Why This Executive Order Matters

Expanded Diversification

For decades, most Americans have been locked into conventional retirement investments like mutual funds, index funds, and ETFs. While these have a place, they’re tied closely to stock market performance, meaning a bad year on Wall Street can take a big bite out of your retirement balance.

This executive order opens the door to asset classes that historically move differently than the stock market, helping reduce volatility and potentially increase overall portfolio stability.

Regulatory Momentum

The DOL has been given until February 2026 to update its fiduciary guidance to account for alternative assets. In parallel, the SEC and Treasury will explore adjustments to rules around investor qualifications, fund structures, and disclosures to make it feasible for plan providers to offer these investments in a compliant way.

Potential Benefits

Supporters argue that alternatives could:

• Deliver competitive or even superior returns over long horizons
  
  
• Provide passive income streams (e.g., from real estate debt or private credit)
  
  
• Offer true diversification by adding assets less correlated to stocks and bonds
  
  

Risks and Challenges to Watch

Higher Fees & Complexity

Private equity and similar vehicles often operate on a “2 and 20” fee structure, 2% annual management fees plus 20% of profits, compared to an average mutual fund fee of about 0.26%. Over decades, these costs can significantly reduce total returns. Complex deal structures can also make it hard for everyday investors to truly know what they’re paying.

Liquidity and Transparency Issues

Unlike publicly traded stocks, many alternatives can’t be sold instantly, you might be locked in for years. They may also lack daily price updates, making it harder to track value in real time.

Legal Exposure

Plan sponsors could face lawsuits if participants feel alternative options were inappropriate or poorly disclosed. In fact, a recent high-profile lawsuit involving Intel’s retirement plan shows how fiduciary disputes over alternative assets can drag on for years.

Long Implementation Timeline

Even with the order in place, most large plan providers (e.g., Fidelity, Vanguard) will need months or years to introduce alt-asset options. They’ll have to create new compliance frameworks, vet products, and train HR and financial advisors.

What Connect Invest Brings to the Table

While the big institutions figure out how to adapt, Connect Invest is already providing simple, real estate-backed investments designed for individual investors who want the benefits of alternatives without the complexity.

Here’s how we’re different:

• Tangible Collateral — Every investment is secured by real property, not just paper promises
  
  
• Fixed Monthly Returns — Predictable income, clearly outlined from the start
  
  
• Low Minimums — Start investing with as little as $500
  
  
• User-Friendly & Secure — We’ve removed the Wall Street jargon so you can invest with clarity and confidence
  
  

Why Now Is the Moment to Act

This executive order is a turning point in how Americans can grow their retirement savings — but the actual rollout into traditional 401(k) plans will take time.

The investors who benefit most will be those who act now to diversify their portfolios outside of conventional stock-and-bond-only strategies.

You don’t have to wait for your HR department to update your plan. You can start today, with a platform that’s already built for the future of retirement investing.

Let’s Make Real Wealth Real Again

At Connect Invest, we believe:

• Real wealth should be built on a solid foundation
  
  
• Smart investing shouldn’t be reserved for the elite
  
  
• Passive income should be possible for anyone willing to take the first step
  
  

The headlines may have just changed the rules, but your financial future is still written by you.