The push is on to stuff your 401(k) with private equity and credit products. At the same time, big institutional owners of these products are offloading them, and it’s not always pretty. BlackRock just suffered a big loss on some of its private credit. Bloomberg reports:
A BlackRock Inc. private debt fund expects to mark down the net value of its assets 19% after a string of troubled loans weighed on results, marking the latest sign of pressure in the private credit market.
Your Survival Guy has been warning that private equity is the next big thing coming for you, and not in a good way. Opaque investments like private equity and credit with low liquidity add risks to 401(k)s that investors haven’t had to deal with in the past.
Action Line: You can take greater control of the money in your 401(k) with an IRA rollover. When you want to talk about doing a rollover, email me at ejsmith@yoursurvivalguy.com. And click here to subscribe to my free monthly Survive & Thrive letter.
Originally posted on Your Survival Guy.