Private Equity investments
Terry – I’m 61 years old and plan to retire in the next 3-4 years. I work for a large bank in the equipment finance sector, so I’m required to keep all my investments with the brokerage unit of my employer.
My financial adviser strongly recommended moving a portion of my 401K into two private equity funds (Partners Group & FS MVP Private Markets) via a traditional IRA under his management. I agreed to move $400K of my $2.2M 401K in January 2025. Do you agree that PE funds are generally less volatile and should I agree to move more of my 401K to PE funds?
Terry Says
No, I do not! And I just finished writing a column on that subject, so check back at my website next week.
Basically, these are illiquid investments, difficult to value, and subject to huge commissions for the “financial advisor.” Plus, do you really think they are “letting you in” on a great deal — that they didn’t take for themselves??!!!
I would avoid. Column will be in syndication and on my website next week, specifically warning against this —
So I’m glad you confirmed my suspicions that this is the next big “trap’ for retirement plans!
