A new Labor Department proposal dropped Monday that should make every American with a 401(k) sit up and pay attention. The Trump administration wants to let you invest your retirement savings in cryptocurrencies and private equity. Wall Street is thrilled. You should be worried.

The proposal allows employers to include these "alternative assets" in workplace retirement plans. That's consultant-speak for: your 401(k) menu could soon include Bitcoin, private equity funds, and other investments that until now were mostly the playground of wealthy individuals and institutional investors like pension funds.

Let me translate what this actually means for your money. Cryptocurrencies are volatile assets that can drop 30% in a week. Private equity involves locking up your money for years with no ability to access it, even in an emergency. These aren't minor details—they're fundamental problems when we're talking about retirement security.

Here's what Wall Street won't tell you: both asset classes come with massive fees. Private equity firms typically charge a 2% annual management fee plus 20% of profits. That's on top of whatever your 401(k) administrator is already charging. Crypto platforms have their own fee structures that can quietly eat into returns. Over 30 years, those fees compound into hundreds of thousands of dollars that could have been your retirement income.

The illiquidity issue is even more troubling. Private equity investments often have 7-10 year lock-up periods. That means if you lose your job, have a medical emergency, or need to tap your 401(k) for any reason, tough luck. Your money is trapped. Traditional 401(k) investments in stocks and bonds? You can sell them in seconds.

Then there's the transparency problem. Public companies have to file quarterly reports, hold earnings calls, and disclose material information. Private equity firms? They're private for a reason. You won't know what you own, how it's performing, or what risks you're taking until it's too late.

Reddit users were blunt in their assessment. One r/wallstreetbets commenter wrote: "This is just a way for rich people to unload their bags onto retail investors." Another added: "They're turning retirement accounts into exit liquidity." Crude language, but they're not wrong about the incentives here.

The proposal is being sold as and to elite investment opportunities. But here's a rule of thumb that's served me well over 10 years covering markets: .