Client Login Form CRS
September 30, 2019

Digging A Moat Around Your Retirement

Digging A Moat Around Your Retirement - Kris Carroll - Carroll Financial

Date: September 30, 2019

Author: Kristopher W. Carroll, CFA®, CFP®

Read time: 2 minutes


Last week I was teaching a class about stock analysis. We were talking about “economic moats,” specifically in regard to technology companies. Companies build economic moats, which are competitive advantages that make it difficult for other companies to take their business, reduce their profits or jeopardize their core business. Our discussion was really interesting because there are many different ways that companies can safeguard their financial well-being. They may have the best technology, patent protection or even a household name that is a core part of our culture such as Google.  Even if a new search engine had better technology than Google, it would be very hard to convince me to use another search engine when Google makes it so easy.


This got me thinking about how individuals protect their financial well-being. Protection might be pursued through insurance policies, financial products or strategies to handle changing financial conditions. One of the things we always consider when building a retirement plan is how to best protect the plan. I have written in the past about the importance of creating a plan that is:


  1. Adaptable: The plan needs to stand up to changing market conditions, changing life events and the unpredictable unknowns yet to come.
  2. Sustainable: The plan is secure well beyond your life expectancy.


I would love to build retirement plans that look like a castle with a moat, a drawbridge and a few guards out front. I spend time looking at every plan to determine how sustainable and adaptable it is. Then I polish my armor and stand at the gate.


We have been holding seminars this month about how to deal with the next bear market. I think the most important message we delivered was that everyone should know what their plan is and what to expect. Bear markets happen and they are inevitable. A retirement plan isn’t a strategy if it does not stand up to market volatility. This does not mean that an investment account should be immune to volatility. Instead, it means that retirees should have confidence that their plans will survive the next bear market, the one after that and the one after that…


Do you feel confident that your plan will survive the next bear market? If not, let’s talk about it! We want you to be able to sleep peacefully in your castle.

Market Volatility, Retirement

Sign up for our E-Newsletter

Market related news, financial planning information and upcoming educational opportunities all in your inbox.