Throughout this site, we’ve mentioned that we want you to know what we’re talking about. We believe that you deserve to understand all the jargon and terminology that comes your way. As part of this belief and commitment, you can go through this glossary page.

Below, you’ll find simplified definitions of some common financial terms. These are meant to be short and accurate, easily digestible. However, they are not comprehensive – for that, you still need a financial planner.

Account-Based Allocated Pension – this is a regular income, usually coming from a superannuation fund. You have the option to nominate the revenue amount you prefer, but a minimum amount is required as determined by the government.

AMP Accredited Financial Planner – these individuals have completed an annual assessment, making them members of the AMP accreditation program.

Assessable Income – this is your income, including salary, dividends, interests, and rent before any deductions. Certain items such as capital gains, eligible termination payments, and others are not included except in particular circumstances. Please consult a financial planner for specific details.

Assets – these are resources you own or belong to your organisation or company. These may be tangible like cash or equipment. Other assets may be intangible, such as intellectual property.

Balanced Fund – this portfolio type covers different assets. They may be both domestic and international in nature. Typically, a balanced fund is designed to provide capital growth and income for the long-term.

Diversification – this is when you spread your assets across multiple types. The spreading also covers managers and distribution. This practice is done to create a portfolio that allows for greater variation and resiliency, rather than risking it all in one investment.


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Inflation – this is the increase in the volume of money and credit, compared to the availability of goods and services. Inflation leads to a continuing rise in general prices.

Long-term Investment – these are investments that mature over a five-year period. The term can also refer to an investment made over a period of five or more years.

Risk Profile – this is how willing someone is to accept certain risks in the process of making money. In particular, it focuses on the ability to take a risk in the present in exchange for greater potential returns over a prolonged period.

Superannuation – this is a payment or pension system for those who are retiring from work. Superannuation is also used to refer to accumulating contributions to a fund, maintained by both the company and its employees.

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