HerMoney with Jean Chatzky

Episode: Private Equity & Crypto in Your 401(k)? What Investors Need to Know Now
Date: February 20, 2026
Host: Jean Chatzky
Guest: Liz Miller, CFP®, CFA, President of Summit Place Financial

Episode Overview

This episode tackles a pressing and emerging topic in retirement investing: the potential inclusion of private equity, private credit, and cryptocurrency in 401(k) accounts, spurred by recent executive orders. Host Jean Chatzky and guest Liz Miller, an accomplished financial planner, demystify what these alternative assets are, how they work, who (if anyone) should consider them, and what risks and costs are involved. The conversation is frank, insightful, occasionally funny, and specifically attuned to the needs and questions of women investors.

Key Discussion Points & Insights

Wall Street’s Push for Alternative Assets in 401(k)s

• Product Evolution & Accessibility
  • Wall Street consistently looks to repackage and sell new products to larger segments of investors.
    • "If there's a product they can sell, they're going to be excited to figure out how to keep repackaging it for more and more and more investors." – Liz Miller [00:32], [05:46]
  • Alternative investments, once exclusive to the ultra-wealthy, are now being positioned for everyday savers through 401(k)s.
  • The move to include these assets is partly a marketing transformation – making what seemed “elite” accessible to more investors.

Defining Alternatives: Private Credit & Private Equity

• What Are They?
  • Private Equity: Buying private company stock instead of public. Generally illiquid and valued less frequently.
  • Private Credit: Lending money (as a group of investors) to companies outside traditional banks; essentially private bonds.

    “Private equity is when you're buying into the stock, the private stock of a company… Private credit… instead of going to a bank to ask for a loan, companies go to investors… and now we've created a private bond and we're calling it private credit.” – Liz Miller [08:46]

• Implementation in 401(k)s
  • Most likely offered as funds (private equity fund, private credit fund), bundled by major asset managers like Vanguard and BlackRock.
    • "I think particularly in 401ks, that's what we'll see. ...There'll be Vanguard Private Equity and Vanguard Private Credit." – Liz Miller [10:34]

Risks of Non-Public Investments

• Valuation Gaps & Perceived Stability
  • Since alternatives aren’t marked to market daily, apparent stability can be misleading. Downturns catch up eventually.

    "You make yourself believe it’s a more stable investment because you’re not seeing the valuations up and down… Probably not. They just haven’t yet been marked to market.” – Liz Miller [05:46]

The Fee Structure Challenge

• Comparing Costs
  • Private funds are notoriously expensive (often 2% fee + 20% of profits), much higher than index funds.
    • "Private equity is known for charging 2% fees plus 20% of the profits." – Jean Chatzky [14:19]
  • Many new 401(k) funds may temporarily offer lower fees, but lasting cost reductions are uncertain.

    "These have always been very expensive. I really don't know if they will change the pricing in a 401k." – Liz Miller [14:40]

Cryptocurrency as a Retirement Asset

• Is Crypto Appropriate in a 401(k)?
  • Crypto is volatile, loosely regulated, and not suitable for every investor.
    • "All three of these choices are not for everyone. Everyone shouldn't have an allocation." – Liz Miller [16:36]
  • For those interested, allocations should be very small (typically 1-3%, possibly as high as 10% in rare circumstances).

    "Crypto assets are in a really different category. It's a very tiny exposure that I think makes sense even for the people where owning it makes some sense." – Liz Miller [19:37]

  • Crypto likely to enter 401(k)s as ETFs, increasing accessibility and volatility.

    "Now that we have exchange traded funds for it, it inevitably will be available in your retirement accounts." – Liz Miller [18:25]

How to Find (and Switch) a Financial Advisor

• Key Criteria for Advisors
  • Look for a Certified Financial Planner (CFP) who acts as a fiduciary.
    • "Whoever you're working with has committed to working only in your best interests." – Liz Miller [20:57]
  • Trust is crucial; discomfort or lack of communication are reasons to look elsewhere.

    "The level of trust with your advisor has to be there day in and day out." – Liz Miller [21:40]

• Breaking Up Gracefully
  • Legally and practically, clients can move to a new advisor with minimal confrontation.
    • "You can ghost your past advisor." – Liz Miller [22:48]
  • If preferred, honesty and gratitude are best: “It’s time for something different.”

Mailbag Questions & Practical Advice

1. Tax Benefits of Crypto in a 401(k) vs. Brokerage ([27:09])

Listener: Kendra

• Q: If crypto comes to my 401(k), is it smarter to invest there for tax advantages?
• A: Yes, upside is tax-advantaged, but losses can't offset other gains as they can in taxable accounts.

  "If there's any reason you would appreciate the tax advantage on the downside, you will lose that in a 401k situation." – Liz Miller [27:51]

• Stick to small allocations even if offered in your plan.

2. Is It Too Late to Add Alternatives Approaching Retirement? ([29:54])

Listener: Daria

• Q: At 59, should I consider private equity or private credit in my 401(k)?
• A: Keep allocation very small, given limited non-retirement assets. Longevity risk matters, but lack of liquidity and need for stable income suggest caution.

3. Will 401(k) Alternatives Show Fees Clearly? ([31:18])

Listener: Jess

• Q: Will fees be transparent or buried?
• A: Fund fact sheets should disclose fees directly. Read them carefully, and don’t rely solely on summaries.

  "It shouldn’t be buried in the tiny print of the disclosure. It should be in the actual fees of the funds." – Liz Miller [31:47]

• High fees + illiquidity often offset the touted returns; be clear on what you expect from such investments.

4. Is “Playing It Safe” Still Smart Near Retirement? ([34:05])

• Insight: Experts increasingly recommend not moving portfolios too conservatively just because you retire; longevity requires continued growth exposure.

  "My 60-year-olds and 70-year-olds, we need the growth… we need to make sure the money will be there, and that does take a higher allocation to growth oriented assets like public stocks." – Liz Miller [36:21]

Notable Quotes & Memorable Moments

• "Fiduciary… in its simplest terms, it means whoever you're working with has committed to working only in your best interests." – Liz Miller [20:57]
• "It's not for everybody. It's incredibly volatile. I talk to some people who think about it as it's, you know, the money I don't mind losing." (on crypto in 401k) – Liz Miller [17:46]
• "You can ghost your past advisor. You're telling us you can ghost, wow, okay. All right, good to know." – Jean Chatzky [22:48]
• "Was that worth it to you for all those years of what we call illiquidity, not being able to get at the money and potentially paying those high fees?" – Liz Miller [33:13]

Timestamps for Important Segments

• [00:32] – Why Wall Street pushes alternatives to everyday investors
• [05:46] – The “illusion” of stability in private assets
• [08:46] – Explaining private equity vs. private credit
• [14:19] – Discussion of fees and cost structures
• [16:36] – Should crypto belong in a retirement account?
• [20:57] – How to find and assess a trustworthy financial advisor
• [27:09–34:05] – Listener mailbag: taxes on crypto, age/timing for alternatives, illiquidity/fees transparency
• [34:42] – Rethinking “safe” vs. “growth” in retirement planning

Conclusion

Jean and Liz emphasize the importance of understanding the risks, costs, and liquidity constraints of private equity, private credit, and crypto—especially as these options enter the mainstream via retirement plans. For most investors, particularly those nearing retirement or with limited assets, exposure should be minimal. Even with new choices, the old rules—know what you’re buying, read the fine print, and get unbiased advice—matter more than ever.

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