Glossary

Annuities (conventional) - Pays a regular guaranteed income for the rest of your life.

Assets - An asset is anything of value that can be converted into cash.

Beneficiaries - The term refers to the person who is designated as the recipient of property under a will, trust or insurance policy.

Buy to let - Is the purchase of a property specifically to let out

CeMAP - Certificate in Mortgage Advice & Practice. This is the qualification, recognised by the Financial Conduct Authority, (FCA), that practising advisors should possess in order to advise on mortgages and mortgage related products. A fully qualified mortgage advisor will possess CeMAP 1, 2 & 3.

CeRER - Certificate in Regulated Equity Release is an FCA approved qualification and is an appropriate qualification for those advising on equity release lending.

CeFA - The Certificate for Financial Advisers is a Level 3 qualification. Achieving the Certificate for Financial Advisers (CeFA) enables advisors to gain a thorough understanding of the principles of good advice and the financial services industry. CeFA can act as a stepping stone towards the ifs Level 4 Diploma for Financial Advisers DipFA which is a benchmark qualification that meets the standards required for those giving professional advice on retail investment products beyond 2012.

DipFA - The Diploma for Financial Advisers DipFA is a Level 4 qualification. It is approved by the Financial Conduct Authority (FCA) and obtaining this demonstrates a higher knowledge level appropriate for providing financial advice. Since January 2012 this is the benchmark qualification that meets the standards required for giving professional advice.

Drawdown - A pension drawdown allows you to take income from your pension pot while the pot remains invested.

Equity (property) - The difference between the current market value of the property and the amount the owner still owes on the mortgage. It is the amount that the owner would receive after selling a property and paying off the mortgage.

Equity Release - This is a way of unlocking the equity held within your home, providing you with a cash sum.

Enhanced Annuities - Providers of these annuities take into account factors such as lifestyle and health and if they believe the annuitant may have a lower life expectancy, they offer a level of income that may be better than a conventional annuity.

Executors - The person(s) responsible for carrying out the wishes of the deceased in line with the Will.

FCA - Financial Conduct Authority. An independent body which regulates the financial services industry in the UK.

First Time Buyer - The buyer of a property for the first time.

ISA - Individual Savings Account, this is a tax efficient way to save or invest.

Joint Life Annuity - Gives retirement income to your spouse or partner if you die first.

MIFS – The Institute of Financial Services (IFS) is a professional body which supports and promotes professionalism within the financial services industry. It achieves this through the provision of qualifications, continued professional development, and through the dissemination of best practices. It is an FCA (Financial Conduct Authority) accredited body and is recognised as an award winning organisation. Individuals are permitted to use “MIFS” if they have met the criteria to become a member of the IFS.

Negative Equity - This is when the amount that you owe on your mortgage is greater than the value of your property.

NI - National Insurance (UK) is the system of compulsory payments by employees and employers to provide state assistance for people who are sick, unemployed, or retired. By paying NI you are also building up your entitlement to certain state benefits, such as State Pension.

OEICS - Unit Trusts and Open ended investment companies (OEICs) are forms of shared investments, or funds, that allow you to pool your money with other investors in the stock markets (at varying levels of risk). This style of investing has proved popular as your money is invested in a broad spread of shares and your risk is therefore reduced. Unit Trusts are gradually being replaced by the more modern equivalent, the OEIC.

Pension - A pension is a way to save money to provide you with retirement income later in life (usually after the age of 55).

Redundancy - Is the term used when an employee is dismissed from employment as the job role is no longer available or needed.

Remortgaging - This is when you already own a property, you have a mortgage with another lender and you wish to change lender.

Repossessed - To take back possession of something, especially for nonpayment of money due. This is referring to a property when a mortgage or other borrowing has been secured against it.

Retirement - Retirement is used to refer to the action where you leave a job or cease working

Single Life Annuity - Gives retirement income throughout your lifetime but provides no income for dependants when you die.

State Pension - A regular payment made by the State to people of (or above) the official retirement age. To receive State pension you must of paid or been credited with sufficient National Insurance contributions.

Tax - A compulsory contribution to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions.

Open Market Option - An annuity does not have to be bought from the pension provider. The Open Market Option allows customers to shop around and compare annuity rates and purchase an annuity using their pension fund with another provider. Competition in the market means the level of annuity income offered in return for a pension fund varies between different annuity providers. Some annuity options are also only available with certain providers.

• Inheritance Tax - The most avoidable tax of them all• The countdown has begun don't miss out on your ISA allowance• Make an appointment today• Has your bank abandoned you?
Contact Us
SEND