Wall Street firms seeking to boost their share of the $48tn in US retirement accounts are salivating at the prospect of selling even more high-risk “alternative investments” to so-called “mom and pop” investors. Retirement accounts are a “pot of gold that all sorts of industry players want to get their hands on”, said Barbara Roper, a former senior adviser at the US Securities and Exchange Commission (SEC).

The potential for big losses and the high fees associated with alternative products can wreck the financial hopes of inexperienced investors with modest amounts of money to put in play, according to former regulators, securities fraud lawyers and investors themselves.

And a growing number of small investors may be at risk in the months and the years to come – thanks to a push by the financial industry, federal lawmakers and the Trump administration to loosen protections for small investors.

In August, Donald Trump issued an executive order that promised his administration will make it easier for Americans to stash cutting-edge investments in their retirement accounts. The order – titled “Democratizing Access to Alternative Assets for 401(k) Investors” – touts “the potential growth and diversification opportunities associated with alternative asset investments”. Americans had $13.9tn in 401(k)s and other employer-based retirement plans at the end of September 2025.