Why can't WE invest in ETF's, Currency or Commodities in our 401k?

Question

All of the funds available in my 401k options are down 10-30% year to date. And, how can I truly be diversified without being exposed to commodities, currencies and international opportunities? I feel Social Security is the biggest Ponzi Scheme EVER. And, to make matters worse savvy investors like myself can't take advantage of all markets within our 401k accounts. My IRA is up over 52% this year alone by moving it from one ETF to another. I'm sure there are others who are up ten times that. We should have the opportunity to manage our own retirement funds. Imagine averaging 15% or more a year for 20 years, tax deferred. I could retire not having to worry about BIG BROTHER or MY UNCLE SAM.

Answer 1

The reason they have restrictions on trading is to keep costs down.  Some such plans have found that when participants started trading within their 401k, the costs went up.  Costs which are paid by everyone, including those not trading.  

The types of investments they offer are kept to a minimum to simplify the 401k.  If every investment vehicle  was available, the administration would become much more complex.

Answer 2

You understand one of the major failings of 401k accounts.  It actually might not be a failing, but it can at times appear so.  Because of fiduciary duty of the fund sponsors they have to be somewhat circumspect in their offerings.  They have to be somewhat plain vanilla.  You have discovered the way around that by using an IRA.  Just don't get too frisky or you may wind up with a drop of 50% or more.

Answer 3

Ya social insecurity is a joke.  I'd love to have that 6% they take and invest it myself.