Private Equity

Are Private Funds in 401(k)s a Good Idea?

Regulators recently approved a change that allows 401(k) plans to offer private equity and other private funds. Many people see this change as a big step forward because it gives retirement savers access to investments that were only available to institutional and high net worth investors in the past.

This change raises an important question: Will the addition of private funds improve outcomes for the average 401(k) participant, or will it just make things more complicated without offering any real benefits?