In 2018, Cathy Shubert, a retiree from Florida, trusted her retirement savings of over $250,000 with an adviser who placed the money in risky products like structured notes and leveraged ETFs. By 2024, she lost more than half her money. Shubert’s story highlights a growing problem for small investors across the US as financial firms aggressively market high-risk alternative investments, seeking to grab a slice of the $48 trillion in retirement accounts nationwide. These investments, often given to wealthy investors, are now being sold more freely to ordinary people, following relaxed regulations. Former SEC adviser Barbara Roper called retirement accounts a “pot of gold” that industry players want to exploit. The Trump administration issued an executive order to open 401(k) plans to more alternative assets, a move praised by SEC chair Paul S Atkins but criticized by investor advocates and fraud lawyers. Many investors, like Shubert, do not fully understand these complex products. Lawsuits claim advisers misled them by calling risky investments “safe” and “guaranteed.” Meanwhile, fees on these products are high, cutting into returns. Florida retiree Kathleen McCauley lost most of her $450,000 retirement savings invested in a private equity fund, and now feels trapped financially. Despite multiple warnings from regulators, the industry continues to sell these products heavily. Studies show many investors lack basic knowledge about investments. Finra’s 2025 survey found almost half of investors would still fall for unrealistic promises of guaranteed high returns. Former GPB Capital CEO David Gentile, convicted of fraud in a $1.6 billion scheme involving alternative investments, was surprisingly freed early by Trump, sparking criticism from victim advocates. Legal battles continue as small investors struggle to recover losses, often denied access to public courts due to arbitration clauses. With the SEC now led by a fully Republican board favoring deregulation, protections for small investors are weakening, raising fears of widespread financial harm. Consumer advocates warn that easing access to complex and risky investment products will likely lead to more losses and hardship for everyday Americans trying to save for retirement.