For decades, wealthy pension funds and big institutions have had access to investment options that average Americans haven't. Private equity. Private credit. Real assets. Investments that often outperform your typical stock-and-bond mix.
Now, thanks to an executive order signed by President Trump, that could finally change — and a broad coalition of conservative organizations just stepped up to make sure it does.
The Two-Tier Retirement System
Think of it this way. Your neighbor who works for a big company with a traditional pension? That fund likely invests in private equity, real estate, and other assets beyond what Wall Street offers on any given Tuesday.
Those investments have consistently beaten the public market returns that typical 401(k) accounts are stuck with.
You, with your 401(k)? You've mostly been limited to mutual funds and index funds. Nothing wrong with those. But you've been kept out of the better seats.
A Georgetown University study found that shifting just 10% of 401(k) assets into private equity would have boosted annual returns by about 0.22% over a decade. That may sound small. But across all 401(k) plans in America, that works out to roughly $35 billion a year — or about a 5% bump in annual spending power for individual savers.
Over 90 million Americans hold 401(k)-style accounts. They deserve a fair shot.
Trump's Executive Order and the DOL Rule
Last August, President Trump signed Executive Order 14330, directing federal agencies to open up alternative investments to 401(k) participants. The Department of Labor responded with a proposed rule that would do exactly that — by clarifying what it means for a 401(k) plan manager to act responsibly when offering these options to workers.
The rule creates a “safe harbor.” That's a legal term meaning: if you follow the process correctly, you're protected from getting sued just because an investment later underperforms.
Right now, trial lawyers regularly go after plan managers — called fiduciaries — whenever an investment doesn't pan out. The legal threat alone has made those managers shy away from anything beyond plain-vanilla options. Nobody wants to end up in court, even when they did everything right.
The safe harbor fixes that. It says: document your process, evaluate the investment carefully, and you're protected. Focus on doing the right thing, not just covering yourself legally.
Who's Saying Yes
More than two dozen prominent conservative and free-market organizations signed a letter to the Department of Labor urging them to finalize the rule quickly.
The list reads like a who's who of the limited-government movement
- Americans for Tax Reform
- National Taxpayers Union
- Competitive Enterprise Institute
- Goldwater Institute
- Citizens Against Government Waste
- America First Policy Institute.
And many more — including our own Citizen Outreach.
The letter makes the case:
“This reform will help level the playing field between 401(k) investors and defined-benefit plans that have long benefited from alternative asset allocations.”
What Critics Say
Not everyone is cheering. Some on the left worry that alternative investments are too risky and too complex for average workers.
They argue that the fees are higher and the investments harder to value than publicly traded stocks. These are fair points worth noting. Private investments are less liquid — meaning you can't sell them as quickly. And valuations can be trickier to pin down.
But conservative supporters push back. The rule doesn't force anyone into alternative investments. It just removes the legal wall that's been blocking plan managers from even offering them. Workers and their employers can still choose whether to participate.
The Path Forward
The Department of Labor is in the comment period now and could finalize the rule later this year. The broad coalition support gives it real momentum.
If you believe Washington shouldn't be in the business of picking which investments are good enough for hardworking Americans, this rule is worth supporting. If you have a 401(k), ask your plan administrator whether alternative investment options might eventually be available to you.
And if you want to make your voice heard, look up the rule — Docket No. EBSA-2026-0166-0001 — and submit a public comment telling the Department of Labor to get it done.
The government has been standing between workers and better retirement returns for long enough. It's time to get out of the way.
Read the full letter here: Final Version 401(K) Letter
The opinions expressed by contributors are their own and do not necessarily represent the views of Nevada News & Views. This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
