Not so private now, eh?

Alternative investments have long been the domain of the ultra-wealthy, institutions and government pensions. Now, the Department of Labor is asking: Why not everyone else? The DOL’s Employee Benefits Security Administration proposed new guidance Monday aimed at making it easier for 401(k) plans to include alternatives by reducing regulatory burdens and limiting litigation risks for fiduciaries. “This is how we will unlock and unleash the full potential of America’s voluntary employee benefit system,” EBSA Assistant Secretary Daniel Aronowitz said during a media event Monday. He emphasized that the agency is not endorsing specific assets but seeking to “level the playing field” and broaden investment options.

Asset managers and industry groups have pushed for this shift, arguing that private equity, private credit, crypto and other alternatives can offer diversification and stronger long-term returns. Some firms are already rolling out semi-liquid funds tailored for defined contribution plans. Still, demand from everyday investors may be overstated. “I’m never going to say there’s zero people asking for this, but I think the marketplace for it is small,” said Robert Massa, managing director at Prime Capital Financial.

Alt-together Now

While alternatives are not prohibited in 401(k)s, they remain rare. Their complexity, limited liquidity and narrower regulatory oversight, have kept most plan sponsors away. Nearly all government plans and more than two-thirds of corporate defined benefit plans use alternatives, compared to just 4% of defined contribution plans, according to the proposal.

President Donald Trump first outlined the regulatory concept in an executive order last summer, and now regulators are taking steps to follow through on it:

• Under the proposed rule, when selecting investment alternatives, plan fiduciaries would need to thoroughly consider factors including performance, fees, liquidity, valuation, performance benchmarks and complexity.
• The rule also aims to address fear factors and create safe harbors to protect plan sponsors from litigation.

“Many of the lawsuits filed in the last 10 to 15 years have been filed against responsible fiduciaries who followed a prudent fiduciary process,” a DOL spokesperson said during the media event.

What’s the Problem? Despite the potential benefits, many advisors remain skeptical. Alternatives can be difficult to value, uneven in performance and harder to sell quickly. “They are not as easy to sell and redeploy as public funds,” said Tom Balcom, founder of 1650 Wealth Management, noting this could pose issues for investors needing to make hardship withdrawals.

Conflicts of interest are another concern. With private equity firms deeply embedded across the financial system, advisors worry about hidden pressures influencing investment decisions. Massa warned that the dynamic could mirror patterns seen before the 2008 financial crisis, when firms pushed products that weren’t always in clients’ best interests. “I’d like for someone to convince me this is a good idea,” Massa said. “But I’m just not there yet. I see too many pitfalls.”

When it comes to growing its business, Creative Planning is keeping calm and carrying on.

The firm is expanding its footprint abroad with the acquisition of the London-based RIA Maseco, a move that will allow Creative Planning to continue expanding services for clients with cross-border wealth management needs. The deal will bring 123 employees and over $5 billion in AUM to the platform of one of the largest RIAs in the US, according to a statement. Scale, it seems, is becoming a requirement for serving high-net-worth clients with global needs.

“We are seeing more and more clients move overseas,” said Creative Planning CEO Peter Mallouk, adding that they currently serve thousands of US ex-pats. He emphasized further expansion in Europe and said Canada is “a major priority.” “We are also seeing more and more people overseas reach out to us asking if we can work with them,” he told Advisor Upside.

Don’t Mind the Gap

The Maseco purchase marks Creative Planning’s second international acquisition this year following the Swiss firm Baseline Wealth Management in January, which added 14 employees and more than $1 billion in AUM. Maseco was “the perfect fit for us,” Mallouk said, adding that of all the firms in the UK, its approach was most similar to Creative Planning’s. Maseco is uniquely positioned with dual registration from the SEC and the UK’s equivalent, the Financial Conduct Authority, as well as expertise in integrating US, UK and offshore financial solutions, said Sam Sphire, vice president of the boutique investment bank Echelon Partners.

But the Overland Park, Kan.-based Creative Planning certainly isn’t the only large RIA looking to expand across the pond:

• Last year, Corient agreed to buy UK-based wealth and asset managers Stonehage Fleming and Stanhope Capital Group, ushering in more than $214 billion in client assets. Also in 2025, Marsh subsidiary Mercer acquired the UK-based wealth manager Fundhouse.
• Then earlier this year, Mercer agreed to buy Madrid-based asset manager AltamarCAM. Madrid will become “a strategic hub within Mercer’s global private markets platform,” the firm said at the time.

“Corient’s and Mercer’s expansion and continued presence in international markets show there is promise overseas as it inherently expands these firms’ addressable markets,” said Sphire, adding that it also offers the opportunity for relatively inexpensive acquisition opportunities versus those in the US.

Stiff Upper Lip. Just because more RIAs are taking advantage of overseas interests doesn’t mean such growth is easy, since each country has their own unique rules and regulations. “Despite the promise of a larger market and cheaper acquisitions, integrating an international business and navigating different nations’ regulatory environments is a complex task that only certain, very well-organized and well capitalized firms should explore,” Sphire said.

Some 60 million US adults identify as childfree, according to the National Institutes of Health, meaning they don’t have children and don’t intend to.

It’s a massive marketplace of advice-seekers with significant wealth and unique needs, said Jay Zigmont, founder of the specialist RIA Childfree Wealth. Few financial advisors focus on this niche, however, and many simply serve childfree adults as an extension of their normal intergenerational approach. That can result in suboptimal outcomes, Zigmont said, especially in the critical areas of retirement, long-term care and legacy planning. It can also leave advisors looking out of touch.

“Many traditional financial planners find themselves kind of stealing client households from other advisors, and almost trading them back and forth,” Zigmont said. “Our business is totally different. Upwards of 80% of our prospects, who actually pay a consultation fee to engage with us for an introductory wealth checkup, have never worked with an advisor before.”

Unique Planning Challenges

Childfree adults have a different lifestyle compared with parents, Zigmont said, so it’s natural their financial situations look different:

• Very few care about how much money they’ll leave behind after death.
• Many worry (a lot) about long-term care in case of illness or accidents, so the firm gets power-of-attorney arrangements in place by the time clients are in their mid-40s.

“It’s very normal for folks in the child-free world to have a much more dynamic life, which needs to be reflected in their financial plans,” Zigmont said. “They change jobs more frequently. They move more frequently. For those who are wealthy and charitably inclined, we work with them to give a lot away while they are alive. They enjoy seeing the impact.”

Bryan Byrer, founder of Millennial Financial Planning, likewise serves a growing number of childfree adults, many of whom are “freaked out” about the long-term care question. “Traditional long-term care policies are really expensive and they might not have the best features,” Byrer said. “We’re putting a bigger focus on life insurance policies with a long-term care rider on top. These are a lot more palatable for clients.”

Tweak the Tech. Financial planning software is generally designed to leave some kind of legacy that may not match a childless person’s goals, warned Lisa Kirchenbauer, founder of Omega Wealth Management. It also tends to project lower safe spending amounts than a childless couple can afford in retirement. Another big question: Who will help manage their affairs after they’re gone?

“The obvious answer of adult children doesn’t work,” Kirchenbauer said. “Currently, I’m serving as power of attorney to a client who has absolutely no family. I am having to make financial decisions for this client as she has dementia and requires 24/7 care at home. We have donated significant amounts to charity, but we have no idea how long she is going to live, and care costs are expensive. We have to manage that.”