Alternative Investments, OK for 401(k)

Retirees face more choices in how to invest their 401(k) retirement funds and Congress is doing its part to anchor Trump II, the digital Caligula's executive order granting "access to alternative assets."

You have to have real income to open a new 401(k) or add to an existing one.  Those lacking sufficient income may even be robbing their 401(k) for today's living expenses. 

I shared this with my wise friend regarding local conditions in West Texas:  

Combine the plight of farmers with a dead oil field and many people are struggling to get by. Meanwhile the poorly paid city workers get to pay more for their crappier health insurance coverage. The old bottom plan is now the "buy up" plan.

My wise friend wrote:

You have to earn real income in an inflationary market while they live on a valuation in a money losing enterprise with a bubble valuation . Seems like a good system, no? LOL. We have the Private Equity Model of removing standard of living for the workers to build the sponsor's net worth. Welcome to the new plantation, same as the old plantation. Just be thankful you didn't have to forcibly contribute your 401K into their alternatives, at least not yet.

As stated before, out here oil and cotton are king.  Here's the five year picture for both commodities:

Both are well below peak prices and recent averages.  With operating costs rising rapidly in the farm belt I'm sure cotton margins are way down.  

Neighbors talk about the lack of work in the oil field and how quiet things are.  Drilling is nearly nonexistent as oil field yard after yard have parked equipment.  

Access to alternatives may not be a boon for those in the financially destroyed category.  Those with ample resources may already have a smattering of alternative investments outside their retirement account.  I'm sure some 401(k) holders are thrilled with the opportunity to invest in private equity, private credit, venture capital, hedge funds, crypto, real estate and commodities.  

Be sure to remember who took care of the investment sellers and left struggling people without a lifeline.  That could change when Congress reconvenes but I doubt it.

Politicians Red & Blue love PEU (private equity underwriters) and their new TechGod brethren.  Increasingly, more are one and it's clear they are about self service.

Update 10-16-25:  Trump doubled the Argentina bailout to $40 billion while farmers suffer from Milei's soybean deal with China.