It's never fun for a new investor to hear that prospective returns moving forward are bound to be modest. Whether it's due to extended valuations, higher risks, or something else, that's just not what someone wants to hear as they seek to put new money into the financial markets after what's been a strong multi-year bull run. It hurts to be sidelined after the S&P 500 has risen 50% in two years or 85% in the last five years.
Retirement planning is constantly changing. The advice that works in one decade may shift in the next, often driven by market conditions, interest rates, and expected long-term returns. One of the most debated topics in this space is the "safe" withdrawal rate - the percentage retirees can pull from their portfolios each year without running out of money. For decades, this figure has generally hovered around 4%, based on historical market performance and bond yields.
On August 7, 2025, U.S. President Donald Trump signed an executive order titled "Democratizing Access to Alternative Assets for 401(K) Investors." Trump's executive order defines alternative assets in a very broad manner to include private equity and private credit, real estate, commodities, and cryptocurrencies. At any rate, with nearly $9 trillion being currently held in 401(K) plans, this executive order represents a historic shift that could potentially reshape how people save for retirement and have indeed major effects on the economy.
