📊 Trump Wants Private Assets in 401(k)s. How Do Everyday Investors Value Them?
Trump’s proposal to allow private equity, real estate, and even crypto in 401(k) plans raises a big question: how will everyday savers know what they’re worth?
No daily prices: Values come from models and estimates, not live markets.
Valuation methods: Discounted cash flows, market comparables, and illiquidity discounts (~30%).
Risks: Opaque pricing, high fees (2%+20%), and potential overvaluation in downturns.
Investor education and transparency will be key as private assets enter retirement portfolios.