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Could you cope with a shock to your bank balance? 5 ways to check you are financially resilient

<a href="https://theconversation.com/profiles/bomikazi-zeka-680577">Bomikazi Zeka</a>, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a> Imagine the dentist has just said you urgently need a A$2,000 dental crown. A week later, a pipe in your bathroom bursts, causing $8,000 worth of damage. Suddenly, you’ve been hit with a $10,000 financial shock. As the cost-of-living crisis plunges more households into financial uncertainty and at least <a href="https://melbourneinstitute.unimelb.edu.au/data/taking-the-pulse-of-the-nation-2022/2023/australians-face-challenging-budgetary-constraints#:%7E:text=Over%20the%20past%20six%20months,has%20increased%20to%2060%20percent.">one-third</a> of Australians struggle to make ends meet, it’s more important than ever to ask yourself: how financially resilient am I? Being financially resilient means you aren’t left financially devastated when an expensive emergency creeps up on you. Here are five key signs of financial resilience. <h2>1. You have a plan for what you’d do if you suddenly lost your salary</h2> Financial resilience means having a plan to fall back on during tough times. This extends to how you’d make money if you lost your job. In practice, that means things like making sure your skills and contacts are kept up to date so you can more easily find a new job. You might also consider whether a “side hustle” job such as tutoring could work for you in the short term, and how you’d put that plan into practice if needed. Perhaps you have a spare room in your home you could rent out for a period of time if you lost your salary. Those examples won’t work for everyone, of course, but it’s still worth asking yourself the question: what would I do if I lost my salary tomorrow? <h2>2. You have enough liquid assets to meet an unexpected financial expense</h2> Liquid assets means money that can be accessed quickly and easily to overcome an unplanned financial expense. Savings are a good example. They provide a buffer so you can cope in the short term if a financial shock strikes. The federal government’s Moneysmart website suggests you aim to have enough in your emergency savings fund to cover <a href="https://moneysmart.gov.au/saving/save-for-an-emergency-fund">three months of expenses</a>. Having an <a href="https://moneysmart.gov.au/glossary/offset-account">offset account</a> as part of a mortgage is another option that provides a buffer. Putting money in an offset account helps you save while reducing the amount of interest on a home loan. You can still access the money in an offset account at any time. <h2>3. You have bought the right financial products, such as insurance</h2> Financial products, such as insurance, hedge against potential losses. Personal insurance is important because it provides income in the event of death, illness or injury. Examples include: <ul> <li> life insurance (which pays out to your beneficiaries, such as your partner or children, when you die) </li> <li> total and permanent disability insurance (which means you may get some money if you acquire a disability that prevents you from working) </li> <li> income protection (which provides you with an income if you can no longer work) </li> <li> trauma cover (which covers a life-changing illness or injury, such as cancer or a stroke). </li> </ul> Check if your superannuation has any of these insurances included in it. <a href="https://www.griffith.edu.au/__data/assets/pdf_file/0030/295770/FPRJ-V4-ISS1-pp-53-75-insurance-literacy-in-australia.pdf">Research</a> has found that many Australians are underinsured. <h2>4. You can still pay your debts when times are tough</h2> Being able to borrow money can help when you’re in a tight spot. But knowing where to borrow from, how much to borrow and how to manage debt repayments is crucial. Financially resilient people use debt responsibly. That means: <ul> <li> not using debt for frivolous expenses like after-work drinks </li> <li> staying away from private money lenders </li> <li> being cautious about buy-now-pay-later services </li> <li> watching out for debts with high interest rates, such as payday loans and credit card debt </li> <li> maintaining debt repayments consistently. </li> </ul> If you’re having debt problems, talk to your lender about renegotiating your repayment arrangements, or contact the <a href="https://ndh.org.au/">National Debt Helpline</a> on 1800 007 007. <h2>5. You are financially literate</h2> Being financially literate means you can assess the benefits and risks of using savings or taking out debt to meet an unplanned financial need. As I have <a href="https://theconversation.com/are-you-financially-literate-here-are-7-signs-youre-on-the-right-track-202331">written</a> before on The Conversation, key signs of financial literacy include tracking your cashflow, building a budget, as well as understanding what debts you have and which to pay first. It also means storing your money across different places (such as superannuation, savings accounts, property and the share market) and understanding how financial assets like cash, shares and bonds work. Being aware of your financial strengths and weaknesses, and having financial goals is also important. Nobody is born knowing how to make sound financial decisions; it’s a skill that must be learned. It’s good to think about the resources you would draw upon to help get yourself out of a difficult financial situation – well before disaster strikes.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/218126/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/bomikazi-zeka-680577">Bomikazi Zeka</a>, Assistant Professor in Finance and Financial Planning, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/could-you-cope-with-a-shock-to-your-bank-balance-5-ways-to-check-you-are-financially-resilient-218126">original article</a>.

Money & Banking

Improving your balance: Tandem walking for stronger muscles

As we age, our muscles tend to become weaker, which is why it’s important to stay in shape with easy and effective exercises. In this video, Taylor Harrison – author, senior’s health expert and Director of <a href="http://www.activeseniors.net.au/">Active Seniors Health Centre</a> – shows you how to do the tandem walk to improve your balance and coordination while regaining strength in your muscles. <iframe src="https://player.vimeo.com/video/295089820" width="640" height="360" frameborder="0" allowfullscreen="allowfullscreen"></iframe> To see more videos and articles on improving your health and fitness from Taylor Harrison, <a href="http://www.oversixty.com.au/search.aspx?Keyword=taylor+harrison">click here</a>. Image credit: Shutterstock

Body

Could this 10 second balance test determine the longevity of your life?

For adults who fall in the older age bracket, being able to balance briefly on one foot may predict how long they’ll live. People who failed the 10-second balance test, which involves standing on one foot were nearly twice as likely to die in the next 10 years, according to a report in the British Journal of Sports Medicine. Unlike aerobic fitness, flexibility and muscle strength, balance tends to be preserved until the sixth decade of life. After that, balance tends to wane quite quickly. Exactly why a simple balance test can predict risk of death is not yet known, said the study’s lead author, Dr Claudio Gil Soares de Araújo. Poor balance and poor muscular fitness can be linked with frailty in older adults. “Aged people falling are in very high risk of major fractures and other related complications,” Araújo wrote. “This may play a role in the higher risk of mortality.” Checking balance on one foot, even for those few seconds, can be valuable way to determine someone’s risk of falling. How does balance predict longevity? To explore whether a balance test might reveal insight into a person’s risk of death from any cause during the next decade, Araújo and his team reexamined data from the 1994 CLINIMEX Exercise cohort study. This study assessed associations between physical fitness, cardiovascular risk factors, and the risk of developing poor health and dying. For the new report, the researchers focused on 1702 participants from ages 51 to 75 with the average age being 61. At their first study checkup, when weight, waist size and measures of body fat were collected. The researchers included only people who could walk steadily in their analysis. At the first checkup, participants were asked to stand on one leg for 10 seconds without holding onto anything to support themselves. The participants were allowed three tries and were asked to place the front of the uplifted foot on the back of the weight bearing leg, while keeping their arms by their sides and their gaze fixed straight ahead. Overall, one in five failed the test with researchers noting inability to pass the test rose with age. In general, those who failed the test were in poorer health than those who passed, with a higher proportion being obese, having cardiovascular disease and unhealthy blood cholesterol levels. Type 2 diabetes was three times more common among people who failed the test as those who passed. After accounting for factors such as age, sex, BMI, history of heart disease, hypertension, diabetes and high cholesterol, the researchers found that the risk of death within 10 years was 1.84-fold higher in participants who failed the balance test. The good news, Araújo said, is “it is never too late to improve balance by specific training. A couple of minutes a day - at home or in a gym could help a lot,” he continued. During a physical, doctors typically check people’s hearts, lungs, cholesterol and blood pressure, but usually don’t measure what shape they’re in. If a doctor can determine if a patient has balance issues a program can be issued to improve overall fitness and wellbeing. Image: Getty

Caring

New study reveals fascinating fact about gender balance in books

Characters in books are almost four times more likely to be male than female, according to a new artificial intelligence study on female prevalence in literature. Researchers at the USC Viterbi School of Engineering used artificial intelligence to examine more than 3,000 English-language books with genres ranging from science fiction, to mystery and romance, including novels, short stories, and poetry. The team used Named Entity Recognition (NER), a prominent NLP method used to extract gender-specific characters. Lead researcher Mayank Kejriwal was inspired to research the topic and was surprised to find that gender bias was prevalent in the books. “Gender bias is very real, and when we see females four times less in literature, it has a subliminal impact on people consuming the culture,” she said. “We quantitatively revealed in an indirect way in which bias persists in culture.” Co-author of the study Akarsh Nagaraj discovered the four to one ratio which showed male characters were more common in books. “Books are a window to the past, and the writing of these authors gives us a glimpse into how people perceive the world, and how it has changed,” she said. “It clearly showed us that women in those times would represent themselves much more than a male writer would.” Using the technology, the team found the most common adjectives used to describe gender specific characters. “Even with misattributions, the words associated with women were adjectives like ‘weak,’ ‘amiable,’ ‘pretty,’ and sometimes ‘stupid,’” said Nagaraj. “For male characters, the words describing them included ‘leadership,’ ‘power,’ ‘strength’ and ‘politics.’” Image: Shutterstock

Books

Oprah Winfrey tumbles while preaching about balance

Media mogul Oprah Winfrey took a fall during her most recent Oprah’s 2020 VIsion: Your Life on Focus tour. She was holding her second-last event at The Forum in Los Angeles and fell to the floor while talking about wellness and balance. "Wellness to me means all things in balance, and balance doesn’t mean all things are equal or at peace at all times," she says in a video captured and posted on Twitter, before she takes a step and falls to the ground. <blockquote class="twitter-tweet"> Oprah took a tumble today during a speaking tour in Los Angeles. Thankfully she’s okay! <a href="https://t.co/UUPuufBoXi">pic.twitter.com/UUPuufBoXi</a> — Pop Crave (@PopCrave) <a href="https://twitter.com/PopCrave/status/1233842455541354496?ref_src=twsrc%5Etfw">February 29, 2020</a></blockquote> "Wrong shoes," she jokingly added. She addressed the incident during an Instagram video that was taken backstage at the event. "I didn't even think 'embarrassing,'" she said in the video. "I just thought 'Okay I fell, everybody knows what falling is.' You would prefer not to fall, but now I've fallen." "I thought this was a great day in spite of the fall, which now becomes a meme, I know," she said in a later video. "But I picked myself up I don't know if it was something on the floor or my foot twisted or what. I had the indication I was gonna fall before, and then it is what it is, it was a great, great day." Luckily, the event went on without a hitch with singer Jennifer Lopez attending as her special guest. The nine-stop tour has featured other special guests, including Lady Gaga, Dwayne “The Rock” Johnson and Michelle Obama. "How do you take this energy of inspiration and people feeling triumphant in their lives? How do you use that to something that's a greater good than just my front porch?" she asked. "And that's how this idea came about. I'll try to spread that word around the country." "The hardest thing I've ever done is to ask all of these people to come on tour," she said, adding that she was glad they all accepted her invitation.

How to have a real work-life balance

Far too many Australians are stressed at work and it’s taking a toll on our physical and mental wellbeing. According to the Australian Bureau of Statistics (ABS), one in five workers suffers from some form of mental illness whether that be depression, anxiety, stress disorders or suicidal thoughts. Untreated mental health conditions cost Australian workplaces approximately $10.9 billion every year. The importance of easing this stress and anxiety is clear. But is the solution as simple as cutting down on work? Shannah Kennedy, life coach, corporate speaker, author and co-creator of the Master Class of Wellness, a program that empowers professionals to reach their highest potential, says you can have a successful career and achieve a happy, balanced life without giving up your work. “We’re taking our work with us everywhere we go these days. Work-life balance isn’t about having lots of time off work, it’s about blending our work and recreation to where we feel we have a sense of control over our health - mentally, physically and emotionally,” she says. Kennedy says we are often to blame for pushing ourselves too hard. One way we do this is that we don’t set clear boundaries on how we use technology and there is often no separation between our work life and our personal life. “Checking phones next to our beds, checking our emails constantly affects the neural pathways for addiction. So people aren’t sleeping properly, they are overwhelmed by information and there is no off switch,” she says. The inability to say no to people’s requests when we really should be looking after our own interests is another contributing factor. We quite often put others’ interests ahead of our own trying to be the best family member, employee, or friend that we can be. Kennedy calls this the ‘disease to please’ and it’s a habit that has to be broken if we are going to find a better work-life balance. Many people may not even be aware that they are stressed, caught up in what Kennedy calls the ‘treadmill of life’. Telltale signs include sleep apnoea, overreacting to situations and having thoughts that replay in your head constantly. You may also find that you’re not really present in your relationships, may have high blood pressure or have trouble tasting your food. Those close to retirement age can be particularly at risk of stress and anxiety as they often haven’t prepared for life beyond work and find themselves having to contemplate starting all over again. “Many have forgotten to work on their friendships and hobbies and have to start from scratch when they retire,” says Kennedy. Life coaches Shannah and Lyndall share their tips for achieving that work-life balance we all long for But by managing your workplace stress you can become more productive at work and a healthier, happier and more inspired version of yourself. Follow these key strategies to begin your transformation. Learn to say “No” “We fear rejection and we fear missing out, but it’s important to realise that you can’t do everything without it having a detrimental effect on you,” says Kennedy. But how can you say no without offending people? Kennedy says it’s about being nice first. “Thank the person for their invitation and then say ‘unfortunately I can’t make it this time’. Use the time to do something that helps you rest and rejuvenate instead,” advises Kennedy. Have a plan and track your time Track your time with a timetable and include work but also activities such as yoga, meditation and social catch ups that improve your mind, body, hobbies and relationships. You should schedule this time in the same as you would important business meetings, advises Kennedy. “Book in the asset first. You are that asset in life and it’s about protecting that asset and booking time out to work on and with that asset,” says Kennedy. Have technology boundaries Don’t sleep with your phone next to your bed and incorporate technology blackout periods into your day. Not checking your work emails will make you feel calmer, but you will also find you become more productive, free from distractions like social media. “From 8pm at night in my house, it’s phones and tablets switched off. Similarly, phones and devices are kept off until after exercise and breakfast and that gives us time to switch off too,” says Kennedy. Move your body Exercise is a perfect stress release and has the added benefit of keeping us fit, healthy and reenergised. Instead of coming home from work and having more ‘screen time’, invest in your body by going for a walk or taking an exercise class. You will feel more refreshed when you do have to tackle those stressful work deadlines. Breathe deeply Kennedy calls this her big secret that allows her to perform better and without stress in her working life. “Most of the population use only 30 per cent of their lung capacity. They are not maximising the oxygen intake into their bodies and their brains so they can’t think; they can’t make decisions,” she says. To reap the benefits of life-giving oxygen take five deep breaths three times a day. “You can change your whole mental state if you learn how to breathe properly,” says Kennedy. Use technology to help you Don’t be a slave to technology. “Make it your slave and become more productive,” says Kennedy. Program your phone’s calendar with things that are non-negotiable to you and set your phone to notify you when you should be doing them. “That means my yoga, my walk, my friend time, my finances. When you get a notification to do your finances for example, you know you can’t go to bed until you finish them,” Kennedy says. See a life coach Bring some extra help into your life by finding a life coach. “A qualified life coach can help educate you about how to better manage your work-life balance and then help you create the structure you need to be the best version of yourself by helping you improve your health, wellbeing, your family life and career,” says Kennedy. Written by Dominic Bayley. Republished with permission of <a href="http://www.Wyza.com.au">Wyza.com.au.</a>

Legal

Cruise descends into "pure chaos" as ship loses its balance

It was supposed to be a relaxing five-day cruise trip to the Caribbean, but instead, passengers were faced with their worst nightmare after a malfunctioning switchboard forced the ship to tilt to its side. The Carnival Sunshine cruise liner left Port Carnaveral on Sunday, October 28, and it didn’t take long for problems to start arising as the unbalanced cruise ship caused chaos with passengers flying out of their seats and plates and glasses falling to the ground in pieces. Those on board compared the incident to the Titanic, with one person claiming that water was seeping into the ship during dinnertime. “We were actually at the table where the window broke and the water came in,” said a passenger to Orlando news station WFTV. “Next thing we know, the whole boat tilted … we were literally hanging on for our lives, dangling … it was really like a scene from the Titanic.” David Crews, a passenger on board the doomed ship, said he didn’t think the back and forth rocking of the ship was a problem until he saw others crying and screaming for help. <blockquote class="twitter-tweet" data-lang="en-gb"> This is the inside of the Carnival Sunshine cruise ship on Sunday evening. <a href="https://twitter.com/CarnivalCruise?ref_src=twsrc%5Etfw">@CarnivalCruise</a> says the ship listed (tilted or leaned) because of a technical issue just hours after leaving <a href="https://twitter.com/PortCanaveral?ref_src=twsrc%5Etfw">@PortCanaveral</a>. (H/t to David Crews for the pictures) <a href="https://t.co/usSaQsZBzG">pic.twitter.com/usSaQsZBzG</a> — Clay LePard (@ClayLePard) <a href="https://twitter.com/ClayLePard/status/1057717193968943106?ref_src=twsrc%5Etfw">31 October 2018</a></blockquote> “Plates and silverware started sliding off the tables. Then the tables themselves started to slide. Glasses and plates started to fall and shatter. At this point, it was pure chaos. Screams. Cries. Panic.” Speaking to <a rel="noopener" href="https://au.news.yahoo.com/cruise-descends-pure-chaos-ship-loses-balance-005339076.html" target="_blank">Yahoo Lifestyle</a>, a spokesperson claims that everything was under control after a minute into the chaos. “There was never any issue with the safe operation of the ship and our officers quickly intervened to correct the situation,” said the spokesperson, as they also admitted to some passengers walking away with minor injuries. The day after the incident took place, the captain issued a note to each guest to explain what went wrong. “We have identified that an electrical switchboard malfunction impacted the use of the fin stabilisers,” it said. “It’s important to note that fin stabilisers are not a safety feature; they are deployed solely for guest comfort to minimise any potential ship motion while at sea. There was never any issue with the safe operation of the ship, and our officers quickly intervened to correct the situation.” Although the cruise line offered compensation of $50 to each guest, many were not impressed and chose to end their journey after the terrifying event.

Travel Trouble

The exercise that will challenge your balance

If you want to enjoy gardening, bushwalking and remain active, it is important to maintain good balance. In this video, Taylor Harrison, author, senior’s health expert and Director of <a href="http://www.activeseniors.net.au/">Active Seniors Health Centre</a>, shares a challenging exercise that will help you to improve your balance. <iframe src="https://player.vimeo.com/video/293874485" width="640" height="360" frameborder="0" webkitallowfullscreen="" mozallowfullscreen="" allowfullscreen=""></iframe> To see more videos and articles on improving your health and fitness from Taylor Harrison, <a href="http://www.oversixty.com.au/search.aspx?Keyword=taylor+harrison">click here</a>. How long can you do the exercise for? Let us know in the comments below.

Caring

How good is your balance? Take the 30 second test

When it comes to preventing falls as we age, maintaining our balance is our best defence. But just how good is your balance? After the incredible response to his previous instructional videos, Taylor Harrison, author, seniors’ health expert and Director of <a href="http://www.activeseniors.net.au/" target="_blank">Active Seniors Health Centre</a>, has returned with a new series of videos to help you maintain your health and fitness over 60. In this one, he shares a simple way to test and improve your balance – and all it takes is 30 seconds. To see more videos and articles on improving your health and fitness from Taylor, <a href="http://www.oversixty.com.au/search.aspx?Keyword=taylor+harrison" target="_blank">click here</a>.

Body

6 easy ways to improve your bank balance

Follow these few simple tips and watch the numbers grow. 1. Have a written budget Budgeting is (really) hard. Writing everything down is a good way to start and it gives you something physical to stick to. You can go old fashioned and use a notebook or go digital with an Excel spreadsheet or even a simple app. Set a budget, stick to it and record everything that goes in or out. 2. Use only cash We are quickly becoming a cashless society, with every transaction now available with a tap or a swipe. The problem is, you don’t actually see the money going out when you use a card, so you can quickly forget how much you’re spending – and it’s a shock to see your account balance. Take out a set amount of cash and then spend it. Once it’s gone, you can withdraw more, but you will have a much better idea of where you are at. 3. Pre prepare your meals Shopping as you go or buying lots of take away can be very expensive. For big savings, do one large shop and then pre prepare some meals ahead for the week. You can make big batches of soup, stews or pasta sauce, freeze them and then they are ready to go during the week. That way, you won’t be tempted to order pizza because there’s nothing in the fridge. 4. Find some free fun things The movies, happy hour or concerts can all add up quickly. Look for new entertainment options that don’t cost money. This could be going for a walk in the park, doing puzzles at home, inviting friends out for a trivia night or binging on a new TV series. Even if you replace one activity a week with something free, the savings will quickly add up. 5. Compare your insurance Home, health, car, life, travel – all your different insurance policies can quickly add up. And while these are necessities, you can make some simple changes and save lots of cash. Put all your policies with the one company, find credit cards that offer free insurance or consolidate your family policies to make sure you’re getting the best deal. 6. Be smart with your bills Gas, electricity and water bills are a fact of life, but there are a few ways you can reduce your payments. Follow basic energy and water saving principles to lower your bills as a whole. Then, make sure you pay them on time or early to avoid any excess fees. It could also be worth moving all your utilities to the one provider to get a multi discount. Do you think you’ll take any of these tips onboard?

Retirement Income

Easy yoga moves to strengthen feet and improve balance

Tracy Adshead is a yoga teacher specialising in yoga for seniors. She is passionate about bringing healing and healthy ageing to the community. For improving balance, it’s important to practice a wide variety of balance practices and this sequence offers you three different movements focusing on your feet. The good news is that it’s never too late to improve your sense of balance. Balancing practices are also beneficial to your posture and coordination and that helps to avoid injury. The key to lasting success is to find ways of integrating these practices into your daily routine, so you could try brushing your teeth whilst lifting all of your toes off the floor or training yourself to balance on one leg with your eyes half-closed (with something to hold on to nearby). They’re are simple to do and could make a big difference. Before you start make sure that you have a clear space with no tripping hazards. If you are really struggling with your balance and experience regular dizziness you should consider talking to your doctor. Follow Tracy on Facebook <a href="https://www.facebook.com/TracyChairYoga/" target="_blank">here</a>.

Body

7 mistakes people make when trying to improve their balance

As we get older, we’re more prone to falling and possibly injuring ourselves. That’s why it’s important to maintain our balance, coordination and stability as we age. The experts at Active Seniors Health Centre are here to dispel any misconceptions you might have when trying to improve your balance. Here are the most common mistakes people with their balance. 1. Thinking that balance cannot be improved In the last 10 years we have worked with thousands of people over 60 to help them with their balance. Nearly all of them have been able to improve their balance quite significantly. By concentrating of improving your flexibility, strength and mobility, nearly everyone can improve their balance, no matter their age or ability. 2. Not understanding that the eyes, ears and body all work together to improve balance The body is very complex and requires a lot of communication internally for it to balance properly. Up to 80 per cent of the brains activity while you are awake is focused on balance control. That is a staggering amount of almost two trillion messages to the brain per second. The brain gets this information from the eyes, ears and the joints in the body to get a picture of where it is and then decides what it needs to do to remain stable. It is active when you are sitting, lying, standing, walking or even dancing. You need all three working in unison for the body to be able to balance effectively. 3. Not moving your joints enough The joints are constantly giving information to the brain about where they are positioned and how they are moving. The more the joints are moved, the more stimulation to the brain and the better your balance is. The key joints are your feet and ankles, your hips, spine and neck. They should be moved gently and comfortably through the full range of their movement every day. Exercises like Tai Chi and dancing have been shown to improve balance while being good for both mind and body. 4. Doing exercise is unsafe if you have bad balance Some exercises can be dangerous if you are not used to them or have bad balance, but interesting some studies show those who don’t exercise are more likely to fall than those who do exercise. The key here is starting slow and gently and gradually building up the challenge of the exercise. If you are doing any balance exercises, you should position yourself in a corner, standing diagonally with a wall on either side and the corner behind you, with a chair in front of you. That way you are surrounded by things to hold on so you don’t fall. Safety first and a bit of common sense goes a long way, don’t do anything that causes pain or discomfort. 5. Not stretching their eyes Eyes, like many parts of the body, are controlled by muscles. These muscles can become tight and stiff, just like ones in the neck, back or legs. Like those bigger muscles, they can be stretched to make them work better and have a positive impact on your balance. The way to stretch them is quite simple, look to all corners of your vision and hold each place for two to three seconds. You should feel a gentle stretch at the back of your eyes while you do it. 6. Not drinking enough water Dehydration is one of the most common reasons for people losing their balance. The change in blood pressure interferes with the function of the brain, which in turn affects balance. You should aim for at least 8 glasses of water a day, more if you are larger than 70kg or if it’s a hot day or you are exercising. 7. Focusing on the external before the internal Most balance and fall prevention material will focus on removing hazards out of their environment to make it safe, but forget to look at improving their balance. I am not dismissing the idea of having good footwear, not having trip hazards or appropriate lighting at home. These things are important, but firstly the goal should be strengthening yourself to deal with challenging environments, for while you can fall proof your home, when you go out and about, you can face significant challenges and want to be ready for them. The fear of falling can trap people inside their fall proof homes. We want people to be safe, but also free to do what they want with their life and really live. Over60 has partnered with Active Seniors Health Centre to provide you with free one-hour balance workshops across Sydney over the next month. With practical tips to improve balance, while also giving you a better understanding of how your body works, you don’t want to miss out. <a href="http://www.oversixty.com.au/community/catch-ups/other-catch-ups/" target="_blank">View the workshops and register via the Over60 Catch-ups page.</a> Related links: <a href="http://www.oversixty.com.au/health/body/2016/08/cycling-could-save-you-from-alzheimers-disease/">Cycling could save you from Alzheimer’s disease</a> <a href="http://www.oversixty.com.au/health/body/2016/07/how-to-reduce-your-cancer-risk/">How to reduce your cancer risk</a> <a href="http://www.oversixty.com.au/health/body/2016/07/secrets-for-a-healthy-heart-after-60/">5 secrets for a healthy heart after 60</a>

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Balancing act for funding your retirement is a tricky test

One of the most difficult - and important - calculations in finance is how much investment capital you will need for retirement. To be able to calculate the savings needed, people need to make some assumptions about the amount of income they can safely draw from their retirement capital. This means finding the retirement income Goldilocks spot, drawing neither too much nor too little. On the one hand, in retirement you want to have the best possible life, while on the other, you do not want the money to run out before you do. Like Goldilocks's porridge, chair and bed, the amount that you take and spend from your capital needs to be just right. There is a rule of thumb in finance which says that in retirement, you can draw 4 per cent of your savings to live on each year. The 4 per cent rule tells you that for every $100,000 you have saved, you can take $4000 in income each year for 30 years. Given its importance to retired people's finances, this 4 per cent rule has been much studied. Although it has been criticised by some, it is largely still considered by most to be a fairly useful tool for modelling what a retired investor can expect to be able to live on. It may be a bit rough and ready, but having a rule of thumb like that is very useful when planning your finances. There are several things that could make the 4 per cent rule either too optimistic or too pessimistic. Firstly, the 4 per cent drawdown rule is based on someone having a balanced portfolio (50 per cent of the portfolio in shares and property, with the other 50 per cent in bonds and cash). If you arrange the portfolio so that it is more conservative than this, your returns are likely to be lower, and so your drawings should be correspondingly lower. Such a conservative portfolio will have less volatility, but the money is more likely to run out before you do. Conversely, if you invest more aggressively, your money might last longer but the volatility risk will be higher. Secondly, the sequence of your returns may not be good. Returns from any portfolio will be volatile, but the timing of the volatility may be unfortunate. For example, if there is a major market fall shortly before or after retirement, it will be difficult to maintain the planned income drawdown. It is close to retirement when the portfolio is at its highest value, so a major market fall then will see the greatest loss of money. This is why it is often wise to start to lower your investment risk as you approach retirement. Thirdly, some people are uncomfortable watching their capital decline. Drawing 4 per cent will usually mean that not just investment returns are being spent, but the capital itself is being used to the extent that nothing is left after 30 years. If you want to maintain investment capital for inheritances, your drawdown rate will need to be less than 4 per cent. Planning this decumulation phase is as tricky as it is important - and, unlike Goldilocks, there is not much room for experimentation. Written by Martin Hawes. Appeared on <a href="http://www.stuff.co.nz/" target="_blank">Stuff.co.nz. </a> Related links: <a href="http://www.oversixty.co.nz/finance/money-banking/2015/11/using-frequent-flyer-miles/">5 ways to get more out of your frequent flyer miles</a> <a href="http://www.oversixty.co.nz/finance/money-banking/2015/11/make-money-online-in-retirement/">6 ways to make money online in retirement</a> <a href="http://www.oversixty.co.nz/finance/money-banking/2015/11/avoid-hidden-banking-fees/">How to avoid hidden bank fees</a>

Retirement Income

How to calculate the bank balance you’ll need to retire

When most people think about retirement, they foresee a need to make sacrifices and reduce their every day spending. For those of you still able to avoid quitting work just yet, it’s imperative that you begin a thorough check on the reality of your spending. Do you know exactly how much you spend in a day? Knowing how much you cough up before retirement is crucial in determining how much you will need when you’ve completely phased out of working. Budgeting for groceries and bills don’t cut it. What are usually left out of budgets are things like: gifts, cash spending, and entertainment. These things are usually averaged out to an approximate number – which is all right when you’re still earning a full-time or part-time income. But when that stops, not looking at how much you really spend each year might leave you underestimating by 20 to 30 per cent. Instead of a guesstimate, pull out your credit card reports and bank statements from the last three months and see how they stack up to what you think your average is. If you’re missing any annual expenses from these statements, add them in to your total. This will help you get a clearer picture of how much you spend on average across the year. You can get an even clearer picture by doing this exercise for the last twelve months in order to capture everything. Since there’s no guessing involved, and the numbers don’t lie, you’ll be armed with the knowledge of exactly how much you’re going to need once you reach full retirement – and whether you need to start cutting back your spending now in order to enjoy a more comfortable retirement.

Retirement Income

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Balancing act for funding your retirement is a tricky test

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News

Shop

Catalogues

Travel

Health

Lifestyle

Finance

Entertainment

Property

Information

Keep up to date

Search

Could you cope with a shock to your bank balance? 5 ways to check you are financially resilient

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Could this 10 second balance test determine the longevity of your life?

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Balancing act for funding your retirement is a tricky test

How to calculate the bank balance you’ll need to retire

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