Private Equity Investing Now Allowed in 401(k) Retirement Funds
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Private Equity Investing Now Allowed in 401(k) Retirement Funds
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Re: Private Equity Investing Now Allowed in 401(k) Retirement Funds
#2I'd buy SpaceX stock, if Elon would allow.
Re: Private Equity Investing Now Allowed in 401(k) Retirement Funds
#3I'd buy SpaceX stock, if Elon would allow.
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Re: Private Equity Investing Now Allowed in 401(k) Retirement Funds
#4I'd buy SpaceX stock, if Elon would allow.
Re: Private Equity Investing Now Allowed in 401(k) Retirement Funds
#5Private equity isn't an appropriate asset class for 401(k)'s. Public markets have a threshold for rules/regulations and reporting requirements.
You don't want your retirement account to be a casino. You want companies that can provide stable, long-term growth of your portfolio-- so the money's there when you need it.
Re: Private Equity Investing Now Allowed in 401(k) Retirement Funds
#6Re: Private Equity Investing Now Allowed in 401(k) Retirement Funds
#7Private equity isn't an appropriate asset class for 401(k)'s. Public markets have a threshold for rules/regulations and reporting requirements. You don't want your retirement account to be a casino. You want companies that can provide stable, long-term growth of your portfolio-- so the money's there when you need it.
Private equity is commonly how the rich got rich. Theres all sorts of asset classes not available to the common public that keep them from reaping rewards. Another being investing in catastrophe bonds and insurance. Tons of fortunes made off all sorts of financial assets, that really arent that esoteric, they are just in the shadows.
Re: Private Equity Investing Now Allowed in 401(k) Retirement Funds
#8Private equity isn't an appropriate asset class for 401(k)'s. Public markets have a threshold for rules/regulations and reporting requirements. You don't want your retirement account to be a casino. You want companies that can provide stable, long-term growth of your portfolio-- so the money's there when you need it.
Private equity is commonly how the rich got rich. Theres all sorts of asset classes not available to the common public that keep them from reaping rewards. Another being investing in catastrophe bonds and insurance. Tons of fortunes made off all sorts of financial assets, that really arent that esoteric, they are just in the shadows.
"how the rich got rich" is survivorship bias. Private equity is also how many people lost some or all of their life savings. I myself have "invested" tens of thousands of dollars in a few startups that have actually gone on to be moderately successful. But my equity has been so diluted that I will be lucky if I get back half of my original investment. The game is heavily biased towards the last shark in the pool, and I am not a shark.
Re: Private Equity Investing Now Allowed in 401(k) Retirement Funds
#9Private equity isn't an appropriate asset class for 401(k)'s. Public markets have a threshold for rules/regulations and reporting requirements. You don't want your retirement account to be a casino. You want companies that can provide stable, long-term growth of your portfolio-- so the money's there when you need it.
The change allows for private equity exposure through a multi-asset class managed fund. A 401(k) shouldn’t (and still can’t) invest in private equity directly and it can’t invest in a private equity fund. People won’t suddenly be betting their 401(k) on WeWork.
It’s definitely a bit riskier but no one is going to lose their retirement savings because of this rule change. The fees on the funds that offer this exposure are where 401(k) accounts will really get screwed.
Re: Private Equity Investing Now Allowed in 401(k) Retirement Funds
#10Earlier quoted context omitted.
Private equity is commonly how the rich got rich. Theres all sorts of asset classes not available to the common public that keep them from reaping rewards. Another being investing in catastrophe bonds and insurance. Tons of fortunes made off all sorts of financial assets, that really arent that esoteric, they are just in the shadows.
"how the rich got rich" is survivorship bias. Private equity is also how many people lost some or all of their life savings. I myself have "invested" tens of thousands of dollars in a few startups that have actually gone on to be moderately successful. But my equity has been so diluted that I will be lucky if I get back half of my original investment. The game is heavily biased towards the last shark in the pool, and…
Right! Absolutely no way you can lose your shirt in the public markets, right? Tell that to Wirecard investors...