rsm
Well-known member
...brought to you by a 2025 executive order.
This is a potential gold mine for Wall St. While this access to 401k / IRA won't be direct, individual investment - as far as I can tell, but I didn't look into all the details - it will open the door to many more people.
I attained accredited investor decades ago, which provides direct access to private equity investments; accredited investor is generally required to invest directly in private equity. I learned a few things about private equity since then.
A few general things to know about private equity:
1) Fees are higher, and there are more fees, and a more complex fee structure.
2) Minimal investment requirements are typically higher than many publicly available investments' minimums.
3) Illiquid; these investments can't be sold quickly or easily, and there will likely be conditions / requirements in order to sell.
4) Valuation is difficult to track, as reporting requirements are not the same as publicly traded equities, or required by the SEC.
Some or all of these will likely apply to private equity investments available to 401k and IRA accounts.
If you don't like reading legal contracts and the fine print, or having an attorney to read it for you, so you have a full understanding of what you are buying; then it's probably not for you. IMO.
This is a potential gold mine for Wall St. While this access to 401k / IRA won't be direct, individual investment - as far as I can tell, but I didn't look into all the details - it will open the door to many more people.
I attained accredited investor decades ago, which provides direct access to private equity investments; accredited investor is generally required to invest directly in private equity. I learned a few things about private equity since then.
A few general things to know about private equity:
1) Fees are higher, and there are more fees, and a more complex fee structure.
2) Minimal investment requirements are typically higher than many publicly available investments' minimums.
3) Illiquid; these investments can't be sold quickly or easily, and there will likely be conditions / requirements in order to sell.
4) Valuation is difficult to track, as reporting requirements are not the same as publicly traded equities, or required by the SEC.
Some or all of these will likely apply to private equity investments available to 401k and IRA accounts.
If you don't like reading legal contracts and the fine print, or having an attorney to read it for you, so you have a full understanding of what you are buying; then it's probably not for you. IMO.
