Private Equity in 401(k)s – Leveling the Playing Field or Fleecing Main Street?

This Video Is Premium Content

Premium Content is Accessible by Premium Users Only
Unlock Premium Access

Retirement Daily Guest Contributor

In a recent announcement, the Department of Labor now explicitly allows allocations of up to 15% to private equity (PE) inside of a target-date fund in 401(k) plans. For the profession, this is a polarizing development. For the 401(k) participant, it’s an added complexity for their retirement savings plan.

Even detractors of private equity will admit that as a tool in the financial toolbox, it adds a correlation and diversification benefit to target-date portfolios. Simply put, private equity does not perform in line with traditional stock and bond investments.

Choose a membership to read the full story.
Join TheStreet+ Today
Get the latest research, news and analysis to help you achieve your retirement goals.
  • Unlock Financial Strategies to Help Your Retirement Planning
  • Tips and Advice on Everything You Need to Know to Live Well in Retirement
  • Submit Your Most Pressing Retirement Questions to Top Retirement Expert, Bob Powell
  • Latest News in Social Security, Medicare and Retirement Planning
Already a Premium Member? Click Here to Log In
Comments

Saving/Investing for Retirement

FEATURED
COMMUNITY