an insufficient corpus that may not last too long this can also happen if you ignore inflationwithdrawing too much when you get a lump sum on retirement you are under the illusion that there is lot of money if you start withdrawing at the rate of 10 even as the corpus grows at 7 you will soon run out of money says priya sunder director peakalpha investment services the rise in survival rate also means that you will live longer so the need to withdraw at a rate lower than the one at which money growsnot diversifying correct asset allocation is critical to ensuring that the corpus lasts longer while you need to bring down equity to reduce risk it is imperative that you invest in it to beat inflation choosing taxinefficient instruments also erodes the corpus which is why fixed deposits may not be the best idea instead go for balanced funds which are taxfree after a yearignoring insurance given that there is a spate in medical problems after retirement you should review your health insurance or have a sufficient buffer as for life insurance you will not need it unless you have dependants or there are maturity benefits and can end ititch 4 not investing for 78 years for kids goalsif you dont start investing for kids goals in the first 78 years you are likely to end up with an inadequate corpus choosing the right instruments for investment is as crucial do not buy life insurance for them or any plan that has the word child in it says jayant pai head marketing ppfas asset management go in for a diversified portfolio with the right mix of equity and debt depending on the time frameif you begin investing right after the child is born you will have enough time to enjoy the high returns of equity funds these are a good way to invest for childrens goals as the risk is reduced considerably after seven years they also offer high flexibility and the returns are taxfree after a year if however you have delayed investment you will have to opt for lowreturn instruments like debtoriented funds or a recurring deposit if you are the sole earning member it is a good idea to buy a ulip which offers insurance and ensures that the premium is paid for even if you die says sunderitch 5 taking car loan for 7 yrs or home loan for 710 yearstaking a loan be it for a home or car and the duration for which it should be taken pose a dilemma for most investors some take a car loan for the maximum duration of seven years even though they can repay it earlier others take a big home loan for a shorter period of 710 years even if it strains their cash flow and doesnt leave any surplus to invest for other goals here are the other factors to help take a decision income if your cash flow doesnt allow you