private equity in 401k

Guideline602 Jan, 2022Business

Highflying tech startups and billion-dollar ?unicorns? generate a lot of buzz, but since most are private companies, the average U.S. worker can?t invest in them. That?s largely due to accredited investor rules which stipulate that in order to invest in a private company, you need an annual income of at least $200,000 or a net worth of $1 million ? excluding the value of your home. In other words, the average U.S. worker doesn?t make the cut. The Department of Labor (DOL) is looking to change that, starting with your retirement portfolio. Earlier this month, the DOL published new guidance explaining how, effective immediately, retirement plan sponsors could start offering private equity funds.