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Here are two ways private equity investing could boost your 401(k) and twoways itcould hurt.
But the upside is that you may not need another investment in your retirement account again.
In addition, these options provide greater diversification, reduce portfolio volatility and enhance long-term returns.
These funds can only work if there are lockups, which eliminate liquidity, Seelinger said.
Getting those funds invested will decease both the amount of pre-deal diligence, as well as mid-deal oversight.
More of those deals will fail, reducing private equity returns.
Private equity investments typically have many rounds and types, including investments that have less security.
Consequently, you are sort of rolling the dice with this investment category.
In other words, consider it a pure speculation.
Barcelo explained, There are usually withdrawal limits that will take years to fully lift.
So, be ready to hunker down for the next decade as this investment froths or fizzles.
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