The Clark Howard Podcast 10.21.25 Ask An Advisor With Wes Moss
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Oct 21, 2025 Explore the upcoming shift in retirement investing as private equity makes its way into 401(k) plans. Wes Moss breaks down what private equity is and the potential it holds for diversifying investments. While he highlights the exciting returns, he also warns of the risks involved. Discover how new collective investment trusts will likely facilitate this change, and get tips on financial education for children from wealthy families. Plus, insights on Roth versus traditional 401(k)s and the dynamics of covered call ETFs are discussed.
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Private Equity Is Coming To 401(k)s
- Private equity is poised to become a new 401(k) category, expanding beyond stocks and bonds.
- This change could shift retirement investing by giving access to the 87% of large U.S. businesses that are private.
Public Markets Cover A Small Slice
- About 87% of large U.S. businesses (>$100M revenue) are private, so public stocks cover a small slice of the economy.
- The number of U.S. public companies has fallen from ~8,000 to ~4,000, shrinking public market choice.
Be Excited But Cautious
- Be excited but cautious: private equity can offer strong returns yet carries specific risks and complexities.
- Treat access through 401(k)s carefully and evaluate liquidity, fees, and manager quality before investing.