Break Free From Traditional Investing!

November 04, 2025•3 min read

R. Kenner French begins by challenging a common misconception among financial advisors — that qualified plans like 401(k)s, profit-sharing plans, and defined benefit plans cannot invest in alternative assets such as real estate, private offerings, or crypto. He clarifies that these investments are indeed allowed, provided they follow IRS and plan rules. Vast Solutions Group has been enabling this for decades and was among the first to allow crypto investments in defined benefit plans. The goal, he says, is to empower trustees to diversify their retirement portfolios beyond traditional markets.

He explains the process in detail: plan assets can be directed into alternative investments through proper custodianship and documentation. For example, if someone wants to invest $100,000 of their defined benefit plan funds into real estate, the asset must be titled in the plan’s name and signed by the trustee as “John Doe, TTEE.” The ownership documents and investment paperwork should always reflect the plan—not the individual personally. This ensures the asset remains sheltered under the qualified plan umbrella and retains its tax advantages.

Custom HTML/CSS/JAVASCRIPT

Kenner then outlines the key benefits of this strategy. Investing in alternatives offers diversification, potentially higher returns, inflation protection, and reduced exposure to stock market volatility. Assets like real estate, venture capital, or even gold can serve as inflation hedges while producing attractive, risk-adjusted returns. By broadening their portfolios, business owners can achieve a more balanced financial position, provided they approach these investments strategically and within compliance parameters.

However, Kenner cautions that alternative investing inside qualified plans comes with serious responsibilities and risks. Since the trustee (the business owner) is effectively their own financial advisor, they assume all responsibility for due diligence and outcomes. Administrative tasks are more complex and costly, and certain investments can be illiquid or volatile. He recounts examples where clients lost large sums due to poor real estate or crypto investments. Therefore, while VastSolutionsGroup.com can provide logistical and compliance support, it does not assume investment risk — that lies with the trustee.

In closing, Kenner emphasizes that alternative investments can be a powerful tool for diversification and tax efficiency, but they must be handled with care. Income or gains generated from these investments flow back into the qualified plan, maintaining their tax-deferred status until withdrawal. Just like an umbrella shields you from rain, the plan shields you from taxes — until you step outside it. Ultimately, he advises business owners to consult their actuaries, plan administrators, and compliance experts before proceeding. With the right structure and discipline, these investments can create significant long-term benefits within qualified retirement plans.

Takeaways

• You can invest qualified plans in alternative assets.

• Financial advisors may not be aware of all options.

• Clients have the authority to choose their investments.

• Alternative investments can provide diversification.

• Higher returns are possible with alternative assets.

• Investments must be held in the plan's name.

• Administrative responsibilities increase with alternative investments.

• There are risks involved in alternative investments.

• Compliance is crucial when investing in alternatives.

• Alternative investments can hedge against inflation.

Sound Bites