Your Survival Guy agrees investors need to save ’til it hurts, but do not fall for private credit in 401(k)s or annuities. Both are going to be or are being pushed by the big players like BlackRock. No, thank you.
In his annual letter to shareholders, BlackRock CEO Larry Fink talked about the future of putting private assets (private equity and credit) into more portfolios. He wrote:
The future standard portfolio may look more like 50/30/20—stocks, bonds, and private assets like real estate, infrastructure, and private credit.
While that may seem appealing to some investors, having 401(k)s become a dumping ground for private equity and credit assets that institutional investors no longer care to own is not. Thankfully, Treasury Secretary Scott Bessent appears to be putting the guardrails on this. Bessent recently gave a speech at the Dallas Economic Club, followed by a Q&A session, during which he discussed private equity and credit coming for 401(k)s. That discussion begins at minute 30 in the video below. At about 36 minutes in, he says that the administration will make sure 401(k)s aren’t going to be a dumping ground for bad PE.
Action Line: Bessent and the Trump administration may not be in power forever, so you need to keep your eye on your 401(k) and what assets are available. When you’re ready to take more control of your investments with a rollover IRA, email me at ejsmith@yoursurvivalguy.com, and I can help you.
Read the entire series here.
