CoinVoice has learned that, according to CNBC, U.S. President Trump signed an executive order on Thursday allowing alternative assets such as private equity, cryptocurrencies, and real estate to be included in workplace retirement plans. However, some investor rights advocates warn that while these new investments may offer tempting returns, they also pose significant risks for long-term retirement savers.
Jerry Schlichter, founding partner of Schlichter Bogard, which specializes in high-fee 401(k) litigation, stated: 'The average person's goal is to have a safe and reliable retirement plan, and new areas like cryptocurrencies or private equity are fraught with various dangers for investors.'
Investment experts typically advise allocating core long-term investment portfolios to diversified assets that can provide stable returns over the long term (at least several decades). Jerry Schlichter points out that, given the long-term upward trend of the stock market, broad-based stock index funds are suitable 401(k) investment options.
The problems with cryptocurrencies are obvious. Although certain cryptocurrencies have provided astonishing returns, these assets have existed for too short a time to prove their safety. 'Cryptocurrencies have no long-term performance history, and their short to medium-term performance is highly volatile,' Schlichter said. 'If you don’t understand this investment, you shouldn’t rely on it as a cornerstone of your retirement assets.' [Original link]
