Lots of people say to remove the mods folder, but it really doesn't matter. The mod files will NOT get altered during an update and it won't break your game. You can safely leave the folder in during an update. I always leave it there and in the entire history of the Sims, I've NEVER had a problem.
** What you DO need to realize though, is every time your game updates, mods will be disabled in the game options. If you load your game after an update and forget to turn it back on, if you play your game with mods disabled and SAVE, then EVERYTHING CC EVERYWHERE will be deleted in the game. Permanently. CC furniture will be removed, CC clothing, hair, everything. You can't get it back either. You'll have to re-place everything, re-outfit everyone.
There's no simple way to handle updates. Updates will likely break MODS but not usually CC. But, if you play with CC/Mods disabled, then you permanently lose all the CC already assigned/placed. It's a lose/lose situation.
The best thing to do is create a new save and call it "No CC/Mods". If your game updates, play that one. DO NOT play your other saves that you've been using CC in until you can get your CC/Mods updated. You will have to do that every time the game updates.