There is no one size fits all approach to creating long-term wealth with UK growth and dividend stocks. However, if I were to start investing today, I believe this strategy could lend a hand me build a gigantic retirement fund.

Reduce costs and taxes

Before I look at any particular stock, I would consider what investment product to buy to lend a hand me achieve my goals. Even if I choose the right stock, I could significantly limit my final gains by not thinking about reducing costs and taxes.

Here’s the first thing to keep in mind. Transaction fees and other costs can vary greatly from broker to broker. The costs of buying shares in Hargreaves Lansdownfor example, it can be as much as £11.95 for each trade. At Trading212, equity trades cost nothing.

For vigorous investors, this can seriously hurt returns over time. I am not saying that inexpensive brokers are a better choice, though. Some platforms offer services and trading experiences that a person may be willing to pay for.

I can also maximise my trading profits by using tax-efficient financial products. For example, a Stocks and Shares ISA allows someone to buy £20,000 worth of securities each tax year without having to pay capital gains and dividend tax.

This could save me thousands of pounds in just one year.

The annual allowance for a tax-efficient Self-Invested Personal Pension (SIPP) can be even higher. This is equivalent to the investor’s annual income, up to a maximum of £60,000.

Please note that tax treatment depends on each client’s individual circumstances and may change in the future. The content of this article is provided for informational purposes only. It is not intended to, and does not, constitute tax advice of any kind. Readers are responsible for conducting their own due diligence and obtaining professional advice before making any investment decisions.

Passive income of £54,252

Next, I would like to build a diversified portfolio FTSE100 AND FTSE 250 Index shares. The benefits here would be twofold. I could target the steady returns of the Footsie index of mature companies, as well as the significant capital gains of hundreds of mid-cap growth stocks.

In recent decades, the FTSE 100 has delivered an average annual return of 8%. Meanwhile, the FTSE 250 has delivered a return of close to 11%.

By investing the same amount in these indices, I could enjoy an average annual return of about 10%. That’s the kind of return that could provide me with a robust passive income in retirement.

Let’s say I spend £400 a month building my portfolio. After 30 years, based on 10% (and with dividends reinvested), I would have a portfolio worth £904,195.

If I then invested this in a 6% dividend yielding stock, I could enjoy a second annual income of £54,252. Assuming City’s dividend forecasts are correct.

FTSE 100 Hero

Unilever(LSE:ULVR) one FTSE 100 share I would buy to achieve this goal. Diversification is vital to lend a hand me reduce risk and enjoy velvety returns over time. And this company has plenty of that.

Not only does it produce a wide range of products (from soap and bleach to mayonnaise and deodorant), it also sells its products in 190 countries around the world. This protects the group’s profits from weakness in certain territories or within specific product categories.

Competition is fierce, as is the risk of losing share to cheaper or own brands. But Unilever’s wide range of “strong brands” such as Lynx AND Parsley This reduces the threat. It also provides excellent pricing power to lend a hand the company grow profits even as costs rise.