0:00 – 0:16
Introduction
Welcome everybody to another Directed IRA podcast. My name is Mark Kohler, and I’m here with the amazing Matt Sorenson. We’re excited about some news this week. Donald Trump signed an executive order, and this one’s one of my favorites.
0:17 – 0:56
Overview of the Executive Order
We’ve got an exciting executive order dealing with 401(k)s and alternative assets. Matt Sorenson, my amazing partner, is going to unpack this for us. This is a tricky thing to understand. Matt, tell us what this executive order is all about.
Matt: It’s all about you and your retirement account and having some investment options, for crying out loud. Can I invest in something besides a stock, bond, or mutual fund? Maybe an ETF? Golly, can I have real estate, a private fund, or crypto? Could I do that in my retirement? No, because Wall Street lobbies against it. They say you cannot. But this executive order is turning the tide, baby.
0:57 – 1:29
Policy Details and Initial Reaction
Let me read the policy. Trump’s executive order sets the policy, and I love this: “It is the policy of the United States that every American preparing for retirement should have access to funds that include investments in alternative assets.”
Mark: Man, we should put that on our website.
Matt: I know. We’ll get into the details on how we’re going to get there, but this is a big shift. Traditionally, Washington, D.C., and Wall Street have been aligned, saying, “In your retirement account, just buy that ETF or mutual fund. Trust us, don’t do these alternative assets that wealthy people use. That’s not good enough for you.”
1:46 – 2:38
Defining Alternative Assets and Summit Plug
Mark: One thing we need to lead with is: what is an alternative asset? Everybody knows what a 401(k) is—it’s part of our culture, well understood. The executive order defines what alternative assets it’s talking about. We’ll let Donald Trump and the executive order define it—it has a little more weight. By the way, we have our Alternative Asset Summit coming up on October 16th and 17th in Scottsdale, Arizona. You can attend virtually, but come live for the great networking. Check out altsassets.com, because we’re going to cover the full spectrum of alternative assets. But here’s what Trump specifically mentioned in the executive order: real estate—are you surprised by that one?
Matt: Yeah, that’s a good one.
2:43 – 3:23
Specific Alternative Assets in the Order
Mark: It’s funny because Matt and I are like, “Duh, the party’s been going on for how long? You just showed up.” But no, that’s nice.
Matt: We’ve got real estate. They called it “digital assets,” but the rest of the world says crypto. Then private funds—basically private equity, private debt, private credit—those types of funds. Also, commodities, infrastructure, development investments, and risk-sharing pools. They weren’t limiting it to just these, but they outlined these as specific ones that should be on the roadmap for what you can buy in your 401(k).
3:41 – 4:49
Impact on the Average American
Mark: A lot of times, we hear about executive orders in the news, and they’re esoteric, not impacting our personal lives. Wall Street’s jockeying with the White House, and lobbyists are at work. But this one will impact the average American in a big way. If you’re a corporate employee, this will resonate. You go to that meeting in the lunchroom where they tell you about the 401(k) for the year. Some financial advisor brings a box of donuts and says, “You might be high-risk, medium-risk, or low-risk oriented. Look at the form on your table and check the box for what you’d like to invest in based on your risk level.” Nobody knows what to ask, and then it’s, “Okay, bye.” That’s your investment decision opportunity. That’s got to change. This is about you being able to say, “Hell no, I want to invest in something different. I think I can get a better return over here.” You have a choice.
4:54 – 5:55
Timeline and Department of Labor’s Role
Mark: But Matt, it’s not going to happen overnight. What’s the timeline on this?
Matt: I love how you framed that because this is going to matter. There’s $8 trillion in 401(k)s. For many Americans, it’s where their most investable money is, and they want options. They don’t want to just check a box for “medium risk” without knowing what they’re invested in. Most Americans can’t even name the ETF or mutual fund they’re in or what’s in it, despite having hundreds of thousands of dollars invested. The executive order is taking two angles. First, they’re telling the Department of Labor, which oversees 401(k) plans, to stop all these lawsuits against fiduciaries for recommending alternatives. The 401(k) industry—plan administrators, record-keepers, advisors—is terrified to allow alternatives because they fear getting sued if the investment goes bad. Old guidance from the Biden administration and others scared 401(k) administrators and advisors away from recommending alternatives.
6:00 – 6:52
Reducing Litigation Risk and Current Options
Matt: The Trump administration is ripping that back, saying endowments and the wealthiest, smartest people allocate to these assets for better returns. Why are we holding everyone else back? They’re reducing liability and litigation risk, which is a big issue. There are cases out there all the time that the industry is terrified about. They’ve got 180 days to come back with guidance and regulations on the Department of Labor side.
Mark: Everyone listening should realize this executive order is about the big 401(k) plans out there. If you or your spouse are in a large employer 401(k) plan, this will be a slow roll, but the time will come when you’ll have more choices in that lunchroom with the donuts. The good news is the message this sends to average Americans: it’s okay.
7:01 – 8:05
Current Availability with IRAs and Directed IRA’s Role
Mark: We’ve been doing this at Directed IRA since we started the company—it’s been available for 20 or 30 years. If you have an old 401(k) or an IRA, you can do this right now. This executive order is like, “Yeah, we’re already doing that,” but it’s also telling everyone it’s okay. You may have been browbeaten or demeaned by your stockbroker or investment advisor into thinking you’re crazy, but you’re not. Take the lid off, people. This is a chance to invest in what you want and feel confident doing so.
Matt: There’s actually more money in IRAs—$17 trillion—than in 401(k)s. You can buy alternative assets like real estate, crypto, or private funds tomorrow. At Directed IRA, someone’s buying an alternative asset in their IRA every 10 minutes. We’re opening 500 to 1,000 accounts a month for new clients investing in alternative assets.
8:10 – 9:02
Shifting Tides and Regulatory Updates
Matt: The 401(k) industry has been controlled by advisors, record-keeper platforms, and Wall Street, who’ve said, “We don’t want to let people do that.” But the tide’s shifting. People are saying, “We want access to this stuff. Stop gatekeeping us.” Trump’s being a populist, saying, “Let’s give people options for crying out loud.” The tide will start shifting for those in corporate 401(k)s to have these options. The SEC has also been tasked with making it easier to invest in alternative assets, with recommendations and guidance coming. Trump tried this in his last administration but at the very end, and when Biden came in, they put the brakes on it. This time, they’re starting early, so there’s enough time to get it rolling.
9:05 – 9:50
Encouraging Choice and Avoiding Wall Street Funds
Matt: If you think investing in alternatives with your 401(k) isn’t a good idea, then don’t do it. I’m just saying, let’s give people a choice.
Mark: You can do this right now with your IRA, and it’s an awesome strategy. Matt and I have been doing it ourselves for years as investors and helping clients across the country. We manage over 22,000 accounts and $3 billion in assets, growing fast because people want options.
Matt: They’re already starting to make private funds with alternative assets—real estate, digital assets, crypto, private equity. It’s another version of Wall Street, let’s be honest.
Mark: Here’s what everyone should worry about: Wall Street will say, “You want alternative assets? Here’s an alternative asset fund.” No, no, no. I want to invest directly in my own alternative asset. You’ll hear, “That’s too dangerous. You’ll screw it up. We’re protecting you from yourself. You’re not smart enough to invest in something directly. Just come to our Alternative Asset Fund. Oh, you want to do real estate? We’ve got that fund for you. Don’t try and do it yourself. You’ll get hurt.” Don’t believe it.
9:52 – 11:27
Self-Directed IRAs and Investor Autonomy
Matt: This isn’t investment advice, of course, but you’ll see more funds offered. We have a lot of people who invest in private funds with their IRA, but they’re choosing the funds they want, not some big Wall Street fund where you can’t talk to the person operating it. For some people, that’s the right investment. Not everyone’s the entrepreneurial type that Mark and I run into at our law firm or Directed IRA, who are like, “Let me go find a deal myself.” There’s a big group of people fine with investing in a private fund. They’re cool with that and don’t want to find deals themselves. Wall Street will serve it up, but at least you have options. What we’re doing every day is open architecture. You want to buy a stock, an ETF, a private fund, or find your own deal? You can do all of that right now with a self-directed IRA, which is the crème de la crème. That’s where the world is your oyster. Grow and maximize your retirement account the best way that works for you without being put in a box.
11:31 – 13:36
Political Context and Call to Action
Mark: The message has been sent. Hopefully, the message is received. Thank you to the Trump administration for trying to give us more flexibility and freedom with our retirement accounts. Don’t look a gift horse in the mouth, I don’t know. Just don’t worry about the messenger. Enjoy the message. I’m excited for all of you. Thank you for listening to our show. As for the practical steps to take, we’ve got our podcast history with incredible steps. Our FAQs and website will be there to help you start taking action right now. So get out there, folks, invest in what you know best. Matt, any final words?
Matt: Get over to directedira.com. That’s where we have all the resources. Subscribe to the podcast. Please share this with your friends and family if you found it helpful. If you’re like, “I don’t really understand this self-directing thing, and you guys say you can do this in an IRA already,” we have so much content on our YouTube channels, this podcast, and at directedira.com. You can book a call with our team or come see us live at the Alt Asset Summit on October 16th and 17th. We’d love to see you there. Thanks everyone for tuning in. We’ll be back with another incredible episode of the Directed IRA podcast next week. Until then, stay calm, self-direct on, and thank you everyone for listening.
13:39 – 13:56
Disclaimer
A quick disclaimer and reminder: this presentation does not constitute an attorney or CPA client relationship, and it is always in your best interest to consult competent legal and tax professionals when conducting your own personal transactions. We also want to make sure you know this is not investment advice or financial advice. We’re just trying to give you education, ideas, and strategies you can take to your professionals or conduct your own research on.
