By Andrea Stevens
AFRO Staff Writer
astevens@afro.com
As the stock market reacts to tariff decisions made – and reversed– in the White House, many baby boomers and near-retirees have seen significant losses in their 401(k) plans. Byron Deese, CEO of Engage Wealth, is urging those preparing for retirement to take a closer look at their portfolios and consider reallocation strategies. He also encourages using this downturn as a chance to reassess additional retirement accounts and treat it as a wake-up call for anyone who hasn’t started planning.
Byron Deese specializes in providing retirement services and employee benefits for small businesses. He is a Certified Exit Planning Adviser (CEPA), and is a licensed insurance agent in Life, Health, and Annuity by the State of Maryland. He is a native of Sanford, Florida, Byron is a graduate of Tuskegee University in Alabama, with a bachelor’s degree in finance.
“A 401(k) is an employer sponsored retirement plan that employees can contribute to and receive a tax deduction for their contributions,” explains Deese.
Deese stresses the importance of reviewing how funds are allocated within retirement accounts. Many employees begin contributing to their 401(k) plans when they start a new job but never revisit their investment choices. With market instability, this oversight can have serious consequences, especially for those within a decade of retirement.
“If you are investing in a 401(k) plan for the long term, when markets are down like this it could create great buying opportunities,” Deese said. “The younger you are, the more risk you can afford to take—because you have the time to ride out market swings and benefit from recovery.”
Deese highlights the value of contributing to Roth options when available. While younger workers might overlook the benefits of after-tax contributions, he emphasizes the long-term payoff.
Vanguard, an investment advisor group, explains a Roth Individual Retirement Arrangement (IRA) as “an individual retirement account that offers tax-free growth and potentially tax-free withdrawals in retirement.” You pay taxes on the money deposited prior to putting it into the account, so it grows tax free.
“If your company offers a Roth contribution option, take advantage of it. The tax-free growth and withdrawals in retirement can be a game changer,” he said. “It may not seem like a big deal in your 20s or 30s, but by the time you’re 60, you’ll be glad your retirement contributions were already taxed.”
Diversification beyond a 401(k) is also essential. Deese recommends indexed universal life insurance policies, which allow for tax-deferred growth and tax-free access through policy loans, while also providing life insurance coverage. These policies offer more flexible contribution limits than Roth IRAs and provide life insurance with living benefits.
Investing in real estate is another way to build long-term wealth. Whether through long-term rentals, mid-term leases or short-term vacation properties, real estate can generate consistent income and strengthen overall financial stability. He also encourages individuals to consider entrepreneurship.
“I think it’s important for everyone to have their own LLC (limited liability company) to market the things they know and understand,” Deese said. “It’s a way to share your value with others and get hired for your expertise.”
“As you approach retirement, begin reallocating. Each year, move 10 percent of your investments from equities to safer, fixed-income options to protect your savings,” said Deese.
Failing to make timely adjustments, he warns, can lead to delayed retirement or additional working years. With inflation, interest rate changes and global market shifts adding uncertainty, Deese emphasizes the need for an active, informed approach to planning. Whether through increasing contributions, diversifying assets or working with a financial advisor, now is a critical time to strengthen retirement strategies and safeguard future income.