We try not to use jargon and to explain everything carefully in straight forward terms. Just in case we slip up from time to time, we maintain here a glossary of financial industry terms. Please let us know if you come across something that is not on our list.
AFSL – Australian Financial Services License. An organisation or individual must hold one of these before they can give financial advice. Summation Strategies’ AFSL is FYG Planners.
AR – Authorised Representative. An AFSL appoints its advisers as authorised representatives. Both Summation Strategies and Anne Taylor are ARs of FYG Planners.
Cleanskin – A term used within the Life Insurance industry for a person who has no pre-existing medical conditions.
Diversification – The process of spreading an investment across different types of investments in order to reduce risk
Independent – An AFSL that has no financial relationship with any financial institution and that does not receive any commissions or charge percentage based fees.
Liquidity – The speed in which an investment can be converted to cash (eg property is non-liquid, a bank account is very liquid).
Non-aligned – An AFSL that no financial relationship with any financial institution.
Rider – Additional cover or feature added to an insurance policy.
SMSF – Self Managed Superannuation Fund.
Superannuation Pension – An income stream paid from an individual’s personally accumulated superannuation.
TPD – Total and Permanent Disability.