Terraria

I've recently beaten the Moon lord for the first time and loved the experience. And I'm thinking of playing all over.

But I'm a little confused. When I created a new worlds inside my previously played character, I carried over basically everything I had in my inventory. Is it supposed to be similar to NG+ in dark souls? (without difficulty bump) In that, am I supposed to create a new character because I basically cheese the entire run with the weapons and items I carry over?