ROBIN SHARMA

Many consumers who buy luxury goods are not in a financial position to afford luxury goods. They do not always act rationally and may spend thousands of dollars on a luxury brand that performs the same function as a similar durable item at a much lower cost.

• You do not choose whether to participate.
• You have no say in how the money is to be invested. Even modestly performing mutual funds yield higher returns.
• You cannot withdraw in response to poor performance and pursue a highly effective one.
• Gov...

• In some cases, purchasing a luxury item can increase self-esteem and give a sense of belonging.
• Some people buy luxury goods as a form of retail therapy.
• Others reward themselves with a luxury item that they typically can't afford.