The Trump administration recently announced a new deregulation proposal to allow individuals to use their 401(k)s and IRAs to invest in private equity funds. This proposal, released by the Department of Labor, is a huge win for millions of American middle-class families and will provide them with another option to invest and grow their retirement savings.

Private equity is a type of investment fund structured as a partnership agreement between an expert investor and individuals with capital. It seeks to invest in companies with growth potential and, as a result, has the potential to deliver strong returns. According to a recent study, private equity returned 15% gains over 10 years.