Americans are divided these days, but if there’s one thing we can all agree on, it should be that greater flexibility and choice in retirement planning benefits seniors and future retirees alike.
That’s why Donald Trump’s recent executive order was such a breath of fresh air. It begins the process of allowing those with 401(k)s to diversify, placing their investments in not just traditional stock options but private equities and cryptocurrencies.
Given how much the economy has changed since 401(k)s were introduced 50 years ago, this seems like a no-brainer. But one Washington, D.C. interest group is trying to stop this needed progress.
It’s called the American Economic Liberties Project (AELP) and at first blush its mission statement sounds noble enough. The AELP seeks to combat “concentrated economic power” and “translate the intellectual victories of the anti-monopoly movement into… concrete, wide-ranging policy changes.”
However, in practice, the AELP often takes a hardline stance against any economic innovation or alternative investment option.
The AELP loathes Trump’s executive order, warning that “stuffing private equity, crypto, and other ‘alternative assets’ into 401(k)s is about propping up scams and bailing out an industry that’s run out of buyers.”
Whatever you think of private equity — and there are upsides and downsides — there’s no question it helps keep the American economy moving. It’s hardly a “scam” or on its last legs.
The same goes for crypto, which has been pronounced dead so many times as to call to mind the old Mark Twain quote: “Rumors of my death were greatly exaggerated.” The global cryptocurrency market in 2024 was estimated to be $5.7 billion in size and is expected to hit $11.7 billion by 2030.
Such galloping growth is thanks to the young, who have disproportionately invested in crypto. About 25 percent of men ages 18 to 49 own Bitcoin or another cryptocurrency, according to Gallup, while about one in seven American adults owns crypto.
In contrast to these youthful investors, the AELP comes off more like the Luddites of old, stamping their feet and trying to squash technological change. The group also pronounces such alternative investments “risky,” which was surely once said about textile mills.
It’s true that private equity and cryptocurrencies carry more risk than traditional stocks. This might concern many seniors and retirees who prioritize stability and predictable returns in their portfolios.
But—and this is crucial—Trump’s executive order doesn’t force anyone to do anything. It merely opens up alternative assets as an option for 401(k)s; those who prefer a slower and steadier route are free to keep their money in stocks.
It’s worth pointing out that this additional risk hasn’t deterred the young. According to a survey of online traders, 43 percent of Millennial investors trust crypto exchanges more than traditional stock exchanges. This is the generation, remember, that graduated from college into the stock market meltdown of 2008. Traditional stocks have their risks too.
In 2024, Bitcoin surged 135 percent in value compared to 24 percent for the S&P 500. Crypto can entail big risks but it can also bring big rewards—rewards that are now open to future retirees.
Ah, but the AELP warns, the same is not true of private equity, which “consistently underperforms the S&P 500”! According to one study, over a 10-year period, private equity investments returned a 13.5 percent increase compared to 9.7 percent for stocks.
Why does the AELP oppose more choice for Americans?
The group was founded and led for years by Sarah Miller, a former senior advisor to Lina Khan. Khan was the head of the Federal Trade Commission (FTC) during the Biden administration and behaved more like a czar, suing companies for no reason other than she thought they were too big.
Trump has since replaced Khan but her legacy lives on at the AELP. This isn’t about protecting Americans from the terrifying clutches of bitcoin. It’s about keeping the Biden administration’s economic agenda on life support—an agenda that reflexively loves government and opposes business, an agenda the American public rejected in 2024.
The AELP doesn’t like private equity because it’s private. They don’t like cryptocurrencies because they aren’t controlled from the Federal Reserve.
Thankfully, the Trump administration seems to understand that Americans deserve expanded options and the ability to tailor their retirement portfolios to their own needs and risk tolerance.
As the economy continues to evolve, seniors and all Americans should have the freedom to choose the investments that best secure their retirement futures.
Saul Anuzis is President of the 60 Plus Association, a 501c4 committed to educating and advancing issues that matter most to seniors and their families