Critics Say 401(k) Private Asset Rule Won’t Protect Investors

Great for alternative asset managers and retirement plan advisory firms. Good for companies offering workplace retirement plans. Of dubious to no value for people with their retirement savings in 401(k) plans.

That’s the verdict from a host of financial planners, retirement experts and consumer advocates around a proposed rule released this week for adding alternative assets to funds in workplace retirement savings plans.

“Plan participants don’t get anything,” said Alicia Munnell, a senior adviser at the Center for Retirement Research at Boston College. “All the risks are on the downside in terms of illiquidity, higher fees and in just not understanding where your money is ...