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S to Z of Money Speak

The final of our four-part series on 'money speak'



You and your employer agree to pay a portion of your pre-tax salary as an additional contribution to your superannuation. Assets that help you produce an income, such as a laptop computer, may also be paid for via salary sacrifice.


Usually a deposit at a bank or credit union offering a higher interest rate than a basic transaction account. Minimum monthly deposits may be required and time restrictions may apply to withdrawals.


Money put aside while you're working to provide an income when you retire. Always aim to build on your super. Chose the investment option - balanced, conservative or growth - that suits your risk profile. Upping your contributions by salary sacrifice or making after-tax contributions are key ways to boost your super. If you want access to a broader range of investments, such as antiques, property and rare metals like gold, a self-managed super fund (SMSF) might be for you.



The length of time a loan or an investment will run. Regular interest is usually paid until they mature, when any remaining interest accrued, plus the original deposit, are paid in full. For a loan, the term is the point at which it must be fully repaid.


Someone appointed to carry out a legal duty - often to manage a super fund on your behalf.



An investment vehicle that pools the resources of a group of investors. In Australia, a unit trust must be registered with ASIC as a managed investment scheme.



A mortgage where the interest charged changes, usually in line with the Reserve Bank's official cash rate. The possibility of rises in mortgage payments must be allowed for in your financial planing. Opposite of fixed rate.


One of many terms used to explain that investments carry risk, and markets can fall as well as rise. When they fluctuate rapidly, they are described as volatile. Greater volatility equals greater risk.



A financial product issued by banks and traded on teh Australian Securities Exchange (ASX). Somewhat like a lay-by, warrants let you lock in the price of an asset to buy at some point in the future.


A financial product issued by banks and traded on the Australian Securities Exchange (ASX). Somewhat like a lay-by, warrants let you lock in the price of an asset to buy at some point in the future.



Getting divorced takes such a toll that people forget the many practicalities and decisions involved in decoupling. When splitting assets, seek advice from a financial adviser on how to divvy up assets.



Yield is the income you receive from an asset on an annual basis



A loan with "zero per cent" interest sounds enticing. White goods and car dealers use this marketing come-on, but the cost of the offer will be built into the pricing at some point. Remember: if it looks too good to be true, it probably is.

Source of article: As published by moneytalk in their Magazine Edition 3 pg. 74 titled "The really simple guide to money"

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For a confidential discussion with a financial adviser about your financial circumstances, please contact us on 03 9935 5233 to set an appointment at our offices in Normanby Chambers, 430 Little Collins Street in Melbourne CBD.

This information may be regarded as general advice. That is, your personal objectives, needs or financial situations were not taken into account when preparing this information. Accordingly, you should consider the appropriateness of any general advice we have given you, having regard to your own objectives, financial situation and needs before acting on it. Where the information relates to a particular financial product, you should obtain and consider the relevant project disclosure statement before making any decision to purchase that financial product.A

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