President Donald Trump signed an executive order to clear the way for Americans to invest their retirement savings in private equity, cryptocurrency, real estate and other alternative assets. It’s a big win for the asset industry — giving financial managers access to some of the $12.2 trillion in Americans’ 401(k) and related retirement plans. Private assets can also be more lucrative, and the Trump administration said they can give retirement savers more opportunities. “The theoretical benefits are that everyday Americans can invest in a broader menu of companies,” said Robert Brokamp, a financial planning expert at stock market research company The Motley Fool. But critics say it could put people in danger of losing a huge chunk of their retirement savings. Plus the fees are higher for private assets than for typical 401(k) investments like mutual funds and ETFs. Right now, private equity is technically allowed in retirement plans, but it’s rare — though some companies like BlackRock are planning new offerings. There are ways people can invest in crypto through their 401(k)s, too, but it’s also not common. And many 401(k) recordkeepers don’t support private equity funds yet. The executive order directs the Department of Labor to re-examine its guidance and clarify its position on alternative assets like private market investments, real estate interests and digital assets within 180 days. And it tells the Securities and Exchange Commission to consider ways to facilitate access to alternative assets for plans like 401(k)s. With updated guidance from the government, employers may feel more comfortable adding these alternative assets into their 401(k)s. Many experts say that might not be a good thing. SageMint Wealth managing partner Anh Tran said, “It could be detrimental to less-informed investors whose only investment account is their 401(k). Without proper guardrails, such as limiting exposure to 5% to 10% of the portfolio, these investors could be exposed to unnecessary risk, misaligned expectations and potentially irreversible losses.” Knut Rostad, co-founder and president of the nonprofit Institute for the Fiduciary Standard, also fears private assets in 401(k)s could put retirement savers at risk of big losses. Kenneth E. Bentsen Jr., president and CEO of SIFMA, said “Policy changes to expand access to private markets investments — appropriately tailored under ERISA and SEC rules — could serve to improve diversification, democratize access, and offer more investment choices to the benefit of everyday retirement savers.”