6 Smart Investment Actions for a Volatile Market

May 26, 2025

When markets are turbulent, business owners tend to zero in on three key investment concerns: their business’s financial resilience, their own retirement savings and the retirement plans they offer employees.

While all three areas benefit from avoiding knee-jerk decisions, there’s only so many times a leader can hear “Stay the course” before they feel compelled to do something—even if it’s something small. 

If you find yourself needing to take action, here are six things you may want to consider. As always, be sure to consult a trusted financial advisor before making any moves.

Your Business’s Financial Resilience

Reevaluate cash reserves to ensure you have 3 to 6 months of operating expenses in highly liquid accounts. This buffer may protect against downturns without derailing your growth plans too much. 

While you’re at it, don’t forget to make that idle cash work for you. Instead of letting excess funds sit in low-interest accounts, consider short-term treasuries or business money market accounts for better yield.

Your Personal Retirement Savings

When markets are jumpy, your investment mix can fall off track. Set a reminder to review and potentially rebalance at least twice a year to stay aligned with your long-term goals.

Consider implementing dollar-cost averaging, which will have you investing a fixed amount at regular intervals no matter the market. This spreads out your investments over time, potentially reducing the average cost per share. 

Your Employees’ Retirement Plans

Now is a good time to invest in financial wellness benefits. Offering access to an advisor or basic retirement literacy tools can boost employee confidence and engagement with their plan.

Encourage employees to take a fresh look at their 401(k) allocations. They may not realize how recent market swings have shifted their mix. Even if you don’t offer a formal benefit for portfolio reviews, a simple reminder can go a long way.
 
While it’s solid advice to avoid overreacting to market swings, small moves during turbulent times can strengthen your overall financial footing. By revisiting your own retirement plans, shoring up business reserves and building your employees’ financial confidence, your business won’t just weather volatility; your business will lead through it. 

If Bank Iowa can help, find a location today to talk to a team member today.