Learning Zone

Saving for retirement

Saving for retirement is usually a very long-term goal, giving you plenty of time to play with. Make the most of it and choose an investment that gives your savings the best chance to grow – while also being a safe pair of hands.

Some investments, such as Alliance Witan¹, are designed with long-term investors in mind. Look out for something with a proven track record of resilience, that has a history of charting a steady course through market ups and downs. Reliable dividends are a plus too, as this tends to mean you’ll get a steady income, even in tough times.

A multi-manager model is also a great way to manage your risk over long time frames. We invest in global equities to capture exciting new opportunities. But - because our fund managers have a range of complementary styles - we’ve carefully spread your risk. 

You’ll also want to check that you can hold your investment in a UK SIPP (Self-Invested Personal Pension) too. SIPPs can offer a few tax advantages, like potential tax relief on your contributions, tax-free growth, and some tax-free cash. 

So, holding a medium-risk, long-term investment in a UK SIPP may help you work towards your retirement goals.

Past performance is not a reliable indicator of future results, and the value of investments can go down as well as up, and you could get back less than you invest. Tax treatment depends on individual circumstances and may change.

 

^{1. https://www.alliancewitan.com/investor-information}

Building a rainy-day fund

Building up your financial independence and resilience is all about balance. You want a healthy amount of growth to keep on an upward trajectory. But you also want to feel that growth is reliable, without lots of stomach-churning risk.

This might mean that you look for an investment that aims to outperform a specific market index, such as the FTSE 100 or S&P 500. At Alliance Witan, for example, our fund managers carefully select stocks from all over the globe to try and pick the world’s winners from the MSCI All Country World Index.

At the same time, you want to protect your wealth as well as grow it. Watch out for investments that are diversified, which helps you spread risk. We use a variety of managers, who invest in lots of different regions and sectors to manage the amount of risk you’re exposed to. 

Dividends can help too. These regular payments could hopefully provide you with a reliable source of income you can count on. 

And don’t forget that if you hold an investment within a UK ISA (Individual Savings Account), that growth can work even harder. You’ll be sheltering your money from both income and capital gains tax.

The bottom line – see if you can find a hardworking medium-risk foundation for your portfolio, while other investments might pursue those higher risk or thematic opportunities.

Saving for a deposit on your first property

Saving for a major purchase like a home can feel a bit unnerving. You want your money to grow and reach your goal faster, but you don’t want to take on unnecessary risk with such a relatively short time frame compared to retirement. So, what do you do?

In an ideal world, you’d hit that comfortable sweet spot between growth and risk. This is where investing can be helpful. Compared to sticking your savings in the bank, investing comes with higher risk, but it also gives you the potential for higher returns. 

A diversified approach can help limit some of the risk that comes with investing. Check for an investment that gives you exposure to a huge range of sectors, regions, and even investment styles. This sets you up for medium-risk growth and reduces your reliance on one market performing well.

If you’re worried about not having easy access to your savings, we can help there. Some investments can take a long time to sell. But, with an investment trust like Alliance Witan, they can be sold and it usually takes just a few days for the funds to land in your account once you’ve requested them¹ - providing flexibility when you need to access your funds.

Capital at risk 

 

^{1. This timeframe can vary depending on market conditions.}

Supporting the next generation

Do you want to support a child or grandchild’s future? Whether you’re funding their education or just want to give them a financial head start, it’s important to consider an investment’s long-term growth potential.

A good tip is to look for a proven strategy. At Alliance Witan, for instance, we have a long history of helping people save over generations - turning even small, regular payments into something much greater.

While it’s crucial to remember that trust performance can fluctuate – and past performance isn’t a reliable indicator of future results – our focus remains on delivering long-term value. This is reflected in our track record, which includes 58+ consecutive years of rising dividends¹.

Compounding can also do wonders for your loved one’s savings. Those consistent dividends can be reinvested to grow the investment faster or withdrawn to cover education costs when needed.

Held within a Junior ISA (Individual Savings Account), those returns are free from income and capital gains tax, making every contribution go further. This can help you create a more comfortable future for the young people in your life.

Past performance is not a reliable indicator of future results, and the value of investments can go down as well as up, and you could get back less than you invest. Tax treatment depends on individual circumstances and may change.

 

^{1. Source: www.theaic.co.uk/aic/news/press-releases/dividend-heroes-1 (accessed 11 December 2025)}

Earning a passive income

When you’re looking for a source of set-and-forget income, your main concern is usually reliability and consistency. What can help you fund your favourite hobbies, or supplement your day job? You want to feel confident that something is coming in regularly, without having to do lots of hard work yourself.

Dividends are an excellent source of passive income. This is where a company may share some of their profits with investors, giving your returns a potential boost. So, look out for investments or businesses that do this regularly. 

Alliance Witan, for example, is a dividend hero, having increased its dividend every year for 58 years.¹ Our dividend yield offers a steady income for your day-to-day needs.

You may also want to prioritise more stable returns over the big highs and lows you can get with high-risk investing. A low or medium-risk strategy that focuses on spreading risk with lots of diversification could be a smarter choice in this case. 

In general, investment trusts have a reputation for dividend consistency. Unlike some other types of funds, they can hold back capital from the good years to create reserves for rainy days allowing them to continue paying out dividends, even in tougher markets. 

Altogether, you ideally want a reliable comfort zone within your portfolio – aiming to deliver income you can count on, without losing sight of the future.

Past performance is not a reliable indicator of future results, and the value of investments can go down as well as up, and you could get back less than you invest.

 

^{1. Source: www.theaic.co.uk/aic/news/press-releases/dividend-heroes-1 (accessed 11 December 2025)}

Leaving a legacy

How can you provide security and peace of mind for those who matter most? For many, it’s about growing and safeguarding the wealth you pass on. 

One way to see if an investment is a good fit is to look at its history. Has it helped families grow their money over multiple generations? Does it have a focus on long-term investing? Although past performance is not a guarantee of future returns, these can indicate whether the investment’s strategy is aligned with your goal.

Global diversification can be important too, as it reduces reliance on any one region, sector, or style. Over the years, this spreads risk and can potentially mitigate any big market downturns.

Most importantly, you should find your and your family’s comfort zone. Striking the right balance between growth, income, and risk. That way, your investments not only work for you today, but stand the test of time for those you want to provide for tomorrow.