Target: Lori Chavez-DeRemer, U.S. Secretary of Labor
Goal: Protect retirement accounts of workers from unnecessary risk and volatility.
Americans’ retirement accounts could be in for a world of uncertainty following a new executive order. The directive, at the behest of President Donald Trump, will introduce cryptocurrency, real estate, and other alternative assets into 401(k) retirement plans. Cryptocurrency in particular has been a major source of promotion and boosting from the president since he launched a cryptocurrency enterprise that has lined his own pockets. Average Americans, however, may not be so lucky, as experts warn of high risks in relying on these types of investments for retirement security.
For one, cryptocurrency schemes are very prevalent. The order calls for much less – not more regulation – of these enterprises, which will make Americans more susceptible to finance-draining fraud. These types of assets are also subject to higher fees and more volatility, which could seriously upend retirement savings even with legitimate investments. Investors will likewise find it much harder to withdraw funds for cash. And unlike the traditional framework of current 401(k) plans, the framework being suggested for these alternative assets brings no guarantee of any payoff at all during retirement.
The only individuals who stand to undeniably reap the rewards of this new system are asset managers and people with a stake in pushing these alternative assets…like the president. Sign the petition below to demand U.S. financial leaders rethink a policy that could tarnish retirees’ Golden Years.
PETITION LETTER:
Dear Secretary Chavez-DeRemer,
“The reality is, though, there is a lot of litigation risk.” The CEO of the planet’s largest asset manager – a man who had lobbied for the change — had this to say about the planned inclusion of alternative assets into 401(k) plans. The word “risk” cannot and should not be ignored, as the risks are plenty. Fraud risk, slow cash-out risk, high fee risk, volatility risk, and the risk of ultimately no payoff: these are the risks you are expecting retirees to assume in what should be the years when they reap the benefits of their hard work. You could curb these risks and ease minds by increasing regulation in this high-stakes proposition, not eliminating it entirely.
Or you can recognize that retirement is not akin to a trip to the casino and that destabilizing the security of millions of older Americans is not a gamble worth taking. Stand with working people and safeguard the foundation they have labored to build for their entire lives.
Sincerely,
[Your Name Here]
Photo Credit: Vlad Chetan
