The following is my
answer to a Quora question: “If I make $100,000 a year, would it
be better for me to live simply and comfortably, or save and invest the money
for retirement?”
None of your goals are mutually exclusive. It is possible to be comfortable, and still
have money set aside for your retirement.
This is where good budgeting comes in.
Assuming you are young enough, you have greater options, because the
mortality charges applicable in certain financial instruments such as insurance
investment plans, are negligible.
Retirement planning generally considers an extended
investment horizon. This allows greater
tolerance for inclement market conditions.
You have the option of a mix of pure investment such as mutual funds;
and for liability mitigation, such as through specific types of insurance
plans, that allow an immediate estate creation.
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