President Trump signed an executive order on Thursday allowing alternative assets such as private equity, cryptocurrencies, and real estate to be included in workplace retirement plans. However, some investor advocates warn that while these new investments may offer attractive returns, they also carry significant risks for long-term retirement savers.

“The average person’s goal is to have a secure and reliable retirement plan, and new areas like cryptocurrency or private equity are fraught with dangers for investors,” said Jerry Schlichter, founding partner of Schlichter Bogard, a firm specializing in high-fee 401(k) litigation.

Investment experts generally recommend allocating a core, long-term portfolio to a diversified portfolio of assets that can provide stable returns over the long term (at least several decades). Jerry Schlichter notes that given the stock market's long-term upward trend, broad-based stock index funds are a suitable 401(k) investment option.

The problem with cryptocurrencies is clear. While some have delivered impressive returns, the asset class is too short-lived to prove its security. Schlichter stated, "Cryptocurrencies have no long-term performance history and are extremely volatile in the short to medium term. If you don't understand the investment, you shouldn't rely on it for your retirement." (CNBC)