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Jargon Busters

12 explanations for complex personal finance terms

At SaSo Strategic Advisers, we understand that personal finance terminology can be complicated.

We want to dispel the jargon and simplify the language, making managing your wealth with us straightforward.

Our Associate Director, Euan Spencer, considered some of the most complex terms we come across in our day-to-day management of our client's money. And he's put together a list of typical terms that are often used by financial advisors.

This jargon-busting list of key definitions will help you navigate the sometimes complex world of money.

If you'd like to talk to one of our highly knowledgeable and qualified team to discuss your personal finance needs, call us today on (01534) 488 777 or email

SaSo Strategic Advisers. Financial Advice, Only Better.

Asset Allocation

Asset allocation involves determining the distribution of your funds across various assets like bonds, equities, cash, or property. SaSo offers guidance on suitable investments based on factors such as investment duration, objectives, and risk tolerance, tailoring asset allocation to your unique situation.


Bonds are loans to entities like governments or corporations for a specified period, with repayment and interest payments. Bonds carry risk, as the issuing entity may not receive the invested amount if defaults.

Critical Illness Insurance:

Critical illness insurance is a type of coverage that pays out a lump sum if the policyholder is diagnosed with a severe illness specified in the policy, such as cancer, heart attack, or stroke. It helps cover medical expenses and other financial obligations during the policyholder's treatment and recovery.


Diversification involves spreading investments across various assets to manage risk, akin to not putting all eggs in one basket, which helps stabilize the overall investment portfolio.


Equities, or stocks and shares, represent ownership in companies and historically offer higher returns over the long term, although past performance doesn't guarantee future outcomes.


Funds pool investors' money for diversified investment options managed by professionals, offering a range of choices and management styles.

Income Protection Insurance:

Income protection insurance, also known as disability insurance, provides regular payments to replace a portion of the policyholder's income if they are unable to work due to illness or injury. It helps maintain financial stability by covering ongoing expenses such as bills, mortgage payments, and daily living costs.

Key Person Insurance:

Key person insurance is a policy taken out by a business on the life of an employee whose skills, knowledge, or experience are crucial to the company. In the event of the person's death, the policy pays out a lump sum to the business, providing funds to cover recruitment costs, loss of profits, or other financial impacts.

Life Insurance:

Life insurance is a financial product that provides a lump sum payment to beneficiaries upon the insured person's death. It helps provide financial security to dependents or beneficiaries in the event of the policyholder's death.


A portfolio comprises a collection of investments which financial professionals can manage or oversee.

Retirement Trust Scheme ('RTS') & Retirement Annuity Trust Scheme ('RATS')

An RTS is a Jersey pension scheme vehicle & the Guernsey equivalent is known as a Retirement Annuity Trust Scheme. These schemes allow individuals, with or without employer contributions, to save for retirement through investment.

Shareholder Protection

Shareholder protection is insurance that safeguards a business in the event of the death or critical illness of one of its shareholders. The policy pays out a lump sum to the surviving shareholders, enabling them to buy the deceased or critically ill shareholder's stake in the company.

If you'd like to talk to one of our highly knowledgeable and qualified team to discuss your personal finance needs, call us today on (01534) 488 777 or email

SaSo Strategic Advisers. Financial Advice, Only Better.

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