Does Private Equity Warrant a Spot in Retirement Accounts?

The Trump administration has set in motion a plan that would effectively allow 401(k) plans for American workers to invest alongside buyout firms. The Labor Department said in June that the move will bolster investment options for consumers and let them access an asset class that can provide better earnings than stocks and bonds. Consumer groups blasted the plan, claiming that high-fee private equity firms are inappropriate for unsophisticated investors because the industry locks up clients’ money for years and backs risky, debt-laden businesses. Bloomberg Opinion writers Nir Kaissar and Barry Ritholtz met online to debate the merits of the plan.

Nir Kaissar: Everyone should have equal access to financial markets. Every time I say it, I’m amazed by the pushback. In any other context, the idea that everyone should be treated equally would go virtually unchallenged.