IFA Jargon Buster

Unsure what technical terms mean ?

 Explore our handy Jargon Buster to see the definition

Moving an investment out of one fund and into another.

Should you cash in certain types of investment prior to an agreed date, you might be charged a fee by the provider to cover their administration costs.

These investments usually offer some capital protection with your money being tied up for an agreed duration with the potential for an agreed level of return.

The marketplace for the sale and purchase of shares, government bonds and other securities.

A professional who buys and sells investments and shares on the stock market on behalf of their clients.

An alternative term for shares.

A state pension additional to the basic state pension, based on earnings. It replaced SERPS (State Earnings-Related Pension Scheme) in the UK and Isle of Man from 6th April 2002.

A low-cost, defined contribution pension scheme introduced by the UK Government in 2001 to encourage people to make provision for their financial future. Stakeholder pensions are aimed at those who may have been unable to afford a personal pension and were not eligible for an occupational or group pension scheme.

A mortgage rate issued by the lender without any deals or discounts applied. Because the rate is variable, the mortgage lender can increase or decrease the rate at its discretion.

An occupational pension scheme in which all the members are trustees and are directly responsible for administering the fund and paying out the benefits. Some funds are invested in assets other than unitised insurance funds.

Another name for smaller companies.

This is an alternative type of pension arrangement that gives you much greater control over how your money is invested and also allows you, unlike with an annuity, to pass on the remaining fund to nominated beneficiaries or your estate should you die in retirement.

These provide income to one person only from an initial capital investment, e.g. a pension pot. Income is not paid out to anyone else after that person's death.

If you own ‘shares’ in a company, you are a part owner of it, entitled to vote at annual general meetings and benefit from the company's profits. The latter are distributed in the form of a dividend payment.

The general name for stocks and shares.

The issue of new share certificates to existing shareholders to reflect an accumulation of profits on a company's balance sheet.