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A&B Financial Planning Blog

23

Simply Put: Terms and Definitions

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In our efforts to demystify the things we do and some of the jargon used in the financial industry, we'll be continually updating this page to provide a glossary of regularly used terms and definitions.
 

ASX

An abbreviation referring to the Australian Securities Exchange, which is Australia's largest share market with roughly 2,200 companies and issuers listed.


ASX200

An index that tracks the combined movement of the largest 200 publicly traded companies on the ASX and is considered the benchmark for Australian share performance.


Death Benefit (Superannuation)

The superannuation benefit (or money payment) made after your death.


Death Benefit Nomination

Your direction to whom and/or what share, payment is to be made. This is your opportunity to ensure who you want your superannuation to go to.

At the end of the day who your super monies goes to, depends on the direction (nomination) made to the Trustee of your superannuation fund. If you don't make a nomination, the Trustee will need to decide who they believe your superannuation benefit should go to, according to the trust deed and trust law.


Market Correction

When the value of a stock, bond, commodity or index shifts drastically (at least 10%) in the opposite direction to which it was trending, often caused by the market or asset being overvalued. It's usually a downward movement in value and happen fairly regularly, but are far shorter in duration than a recession, lasting anywhere from a couple of days to several months. 


Superannuation Guarantee (SG)

The compulsory contribution employers must make on behalf of their employees to their superannuation. The contribution must be 9.5% (minimum) of the employee's ordinary time earnings and needs to be paid at least every quarter to the employee's superannuation fund.
 

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Disclaimer - Information current at time of publishing - This information is of a general nature only and has been prepared without taking into account your particular financial needs, circumstances and objectives. While every effort has been made to ensure the accuracy of the information, it is not guaranteed. You should obtain professional advice before acting on the information contained in this publication. You should read the Product Disclosure Statement (PDS) before making a decision about a product. Copyright © 2016 Matrix Planning Solutions, AFSL & ACL No. 238256. All rights reserved.

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