Warren, Sanders Say PE in 401(K)s Is ‘Dangerous’ for Americans

President Donald Trump’s move to let private equity and cryptocurrency become bigger pieces of the average retirement saver’s portfolio could lead to financial harm for millions of Americans, Democratic Senator Elizabeth Warren and independent Senator Bernie Sanders said.

Trump in August signed an executive order easing the path for private equity, crypto and other alternative assets to be added to retirement plans. But the senators warn the products may be too risky for 401(k)s, citing lax oversight and greater volatility compared to traditional stocks and bonds.

Elizabeth Warren

Photographer: Daniel Heuer/Bloomberg

So-called defined contribution plans have become the primary vehicles for retirement saving ...