Annuity
Provides predetermined regular payments in return for the investment of an initial lump sum.

Approved Deposit Fund (ADF)
A fund approved by the Australian Taxation Office to receive Eligible Termination Payments.

Asset Class
A broadly defined category of financial assets. The most commonly referred to asset classes are cash, fixed interest, shares and property. Subdivisions include international or Australian, Listed or unlisted, securitised, and monthly income.

Beneficiary
The person or company chosen to receive money following a person's death.

Bona Fide Redundancy Payment
A payment by an employer to an employee as compensation for losing a job due that no longer exists. All or some of this payment may be tax-free.

Capital
The amount of money invested by an individual, trust, company or a self managed super fund.

Capital Guarantee
Guarantees the return of capital, and might also guarantee interest once credited to an account.

Capital Secure
Refers to a fund where the underlying investments are usually a low risk.

Capital Stable
Refers to a fund where the underlying investments are usually a low risk.

Cash
Investments for less than one year that can be readily accessed such as bank deposits, bank bills, and cash management trusts. Money held in cash is generally available at short notice.

Deferred Annuity
A retirement investment that is purchased with an Eligible Termination Payment where the annuity income stream starts at a later date, usually age 65.