BiggerPockets Daily What to Know About Placing Alternative Assets in Your 401k
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Dec 7, 2025 Discover the exciting new possibilities for 401(k) investments, thanks to a recent executive order. Learn about the inclusion of alternative assets like real estate, cryptocurrency, and private equity. With 401(k)s collectively worth $9 trillion, there’s a significant opportunity for private investment managers. However, be aware of potential risks such as liquidity issues and high fees that require careful navigation. Understand the different ways you can invest through your 401(k), from self-directed accounts to 401(k)-owned LLCs.
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401(k) Rules May Open Massive Capital Pool
- President Trump signed an executive order to allow alternative assets, including real estate, into 401(k) plans.
- This could unlock a huge pool of roughly $9 trillion across U.S. retirement plans for private real estate and other alternatives.
Beyond REITs: Direct Real Estate Possibilities
- The order would expand beyond stocks and bonds to crypto, private equity, and direct real estate interests.
- This includes non-public property holdings, not just publicly traded REITs, if fiduciaries approve them.
Plan For A Slow, Structured Rollout
- Expect a 6–18 month rollout and several likely structures for including real estate in plans.
- Consider pathways like self-directed 401(k)s, private real estate funds, or 401(k)-owned LLCs for compliance and management.