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There are 90 million American workers with company sponsored 401(k)plans. These 7,143 plans have a cumulative value of $14 trillion. This figure is twice the amount of the federal budget and 25% of the total value of the US stock market.

Plan participants are required to choose their investments from a list of mutual funds prepared by a financial professional who is compensated by the funds they recommended. In 2015, the US Supreme Court mandated that employers must provide reasonably priced mutual funds or be fined to make up the difference.

But with the stoke of a pen, President Trump has turned the 401(k) world on its head. On August 1, he signed an executive order directing the Department of Labor to open up 401(k) plan dollars to previously unavailable alternative investment vehicles such as private equity, real estate, and crypto currency.

The exact implement date and details of the investment products are yet to be determined. But we do know that the Wall Street marketing departments have been burning the midnight oil to prepare investment vehicles based on concepts yet to be tested and proven.

In this episode, I will share my thoughts on how Wall Street might package these alternative assets into a product for use in 401(k)s. I will also share my thoughts on how they might perform and how to evaluate their performance vs those funds currently available in 401(k) accounts.

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Eighty million American workers participate in their companies 401(k) plan. Collectively, they have $14 trillion dollars invested in these plans. They make their own investment decisions by selecting mutual funds from a list prepared by an investment professional who is compensated by the mutual funds they place on the list. Last year, American workers paid $275 billion dollars in fees to have Wall Street manage their mutual funds. Over the course of the next decade this figure will exceed $3 trillion dollars.

There are those 401(k) participants who choose funds with minimal fees and superior performance. Others choose funds with high fees and subpar performance. According to Bureau of Labor Statistics, the average 401(k) balance is $123,465. There are several million whose balance exceeds $1 million.

In this episode I will explore how the 401(k) program is structured, and what it takes to become a member of the elite $1m 401(k) club.

SPOILER ALERT – this is not a once in a life time stock pick. Becoming a 401(k) millionaire require discipline and patience.

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In this stop on my 62-year journey along Wall Street, I discuss the evolving nature of the stock market. Today’s market is not your father’s market. Sixty years ago, less than 3 percent of the American public owned stock. Today that number is north of sixty percent and growing. Sixty years ago, Wall Street brokers were the gate keepers to the equity markets. Today, eighty million American investors make their own investment decisions using discount brokers and index funds. And outperform the pros, to boot!!

The fees charged by the Wall Street mavins are based upon their alleged ability to predict individual stock prices and market movements. After six decades as a stock market observer and participant, I have concluded that Wall Street analysts and TV weather people are distant cousins.

We are about to enter the Q2 earnings report season, and according to Yahoo Finance, investors are waiting with bated breath for the release of those numbers. In this episode, I discuss Wall Street’s ability to predict stock prices and market movements and comment on their usefulness.

The episode concludes with observations on how 401(k) participants can leverage the 401(k) infrastructure to outperform the Wall Street pros.

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