I came across an interesting question on one of my social media platform. It relates to retirement and I would like to share my short thoughts.

Suppose you have previously set a target amount for retirement. If you manage to accumulate this target, you believe you could comfortably retire. This amount includes the necessary buffers.

Then, you hit this target amount.

If you don’t quit your day job, does that mean you could spend ALL your current income and yet don’t have to worry about not having enough for retirement?

My friend wonders if this kind of thinking is sound. I would agree with a lot of his friends’ comments that this plan isn’t sound unless the money is ALL spent on his friends. Jokes aside, generally this line of thought is not too wrong. We tend to compartmentalize our wealth so that we can cope better. One of the popular