Trump 401k changes: What to know

Your 401(k) options could change soon.

Your 401(k) options could change soon. President Donald Trump signed an executive order Thursday to clear the way for Americans to invest their retirement savings in private equity, cryptocurrency, real estate and other alternative assets.

It’s a big win for the asset industry — giving financial managers access to some of the $12.2 trillion in Americans’ 401(k) and related retirement plans. Private assets can also be more lucrative, and the Trump administration said they can give retirement savers more opportunities.

“The theoretical benefits are that everyday Americans can invest in a broader menu of companies,” said Robert Brokamp, a financial planning expert at stock market research company The Motley Fool.

But there are higher risks — and not necessarily higher rewards. Critics say it could put people in danger of losing a huge chunk of their retirement savings.

“There is a lot less transparency and liquidity in private markets,” said Brokamp. “There’s not as much information about the companies, and it could be hard to sell your investments — especially during a panic and many, many investors are trying to sell at the same time.”