Private equity and private credit have long been the playground of institutional investors and the ultra-wealthy, but now they may be coming to your 401(k). Is this a golden opportunity or a risky gamble for your retirement savings?
In this episode, certified retirement counselor Mark Struthers breaks down the good, the bad, and the downright ugly pitfalls of adding private investments to retirement plans. Listen in to hear why even seasoned investors need to tread carefully when the stakes are your future security.
What You’ll Learn:
- Why private equity is suddenly being discussed for 401(k) plans.
- The good side (higher returns, diversification, and unique growth opportunities).
- The bad side (illiquidity, high fees, lack of transparency, and complexity).
- The ugly side (fiduciary risks, untested performance, and conflicts of interest).
- How these investments could affect your retirement security in both up and down markets.
- Key questions to ask before adding private equity to your portfolio.
Ideas Worth Sharing:
- “The idea that the public companies are the only ones that you should invest in or look at or consider is just not sound investing.” – Mark Struthers
- “If getting inflation plus 5% or 6% or 7% over longer periods of time in the public market can reach your goals, then why would you want to take on all the downsides that are potentially here?” – Mark Struthers
- “When it comes to liquidity, you don’t want to be the one digging for your retirement funds.” – Mark Struthers
Resources:
- Work with Mark Struthers
- Subscribe to our Healthy & Wealthy newsletter and get our 2025 Tax Cheat Sheet: Subscribe here
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Disclosure:
Investment advisory services are offered through Sona Financial LLC (DBA Sona Wealth Advisors, Sona Wealth, Sona Wealth Management), an investment adviser registered in the state of MN. Sona Financial only offers investment advisory services where it is appropriately registered or exempt from registration and only after clients have entered into an investment advisory agreement confirming the terms of engagement and have been provided a copy of the firm’s ADV Part 2A brochure and document.
This video or article is for educational purposes only and is not exhaustive. Nothing discussed during this show/episode should be viewed as investment advice. Diversification and/or any strategy that may be discussed does not guarantee against investment losses but is intended to help manage risk and return. If applicable, historical discussions and/or opinions are not predictive of future events. The content is presented in good faith and has been drawn from sources believed to be reliable. The content is not intended to be legal, tax, or financial advice. Please consult a legal, tax, or financial professional for information specific to your individual situation.
This content has not been reviewed by FINRA.