Executive Order Expands Access to Alternative Assets for 401(k) Investors
Impact Score: 2.6
Timeline: Implementation within 180 days, including reexamination of ERISA guidance and proposal of new rules by the Secretary of Labor
Summary: This Executive Order broadens retirement plan options by enabling 401(k) and defined-contribution participants greater access to alternative asset investments—such as private equity, real estate, digital assets, commodities, infrastructure financing, and longevity risk-sharing pools. The Secretary of Labor, in coordination with the Treasury and SEC, will review and update fiduciary duty guidance to balance risk, long-term returns, and litigation prevention. While this democratization presents increased complexity and potential legal risks, it also offers opportunities for institutions like Vanderbilt University to adapt retirement offerings, conduct research, provide education, and engage with federal agencies to maximize benefits for their employees.
Key Actions: Vanderbilt’s Financial Planning Office should assess impacts and align retirement plans with new guidelines; the Economics Department should research economic implications; the Office of Federal Relations should monitor regulatory changes; the Law School should analyze legal risks; and the Owen Graduate School of Management can develop training on alternative asset investments.
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