Like many investors, I have a Self Invested Personal Pension (SIPP). It's a great way to have extra oversight of my money as I move ever so slowly toward retirement. For some people, this is an extra sum of money to supplement their workplace pension. For others, it is a place to consolidate all pensions.

So when is the best time to start a SIPP? Well, the obvious answer is as soon as possible. Someone starting work today at 21, for example, would need around £2.5m in their pension pot at 68 to enjoy a comfortable retirement – ​​and that accounts for inflation.

This may seem like a challenge, but it is the equivalent of saving for a £760,000 pension for retirement today. So what is the value of SIPP here? Well, by starting with retirement age, plus a workplace pension, a Brit can advance retirement age significantly.

In fact, by setting aside £200 a month, including tax relief, an investment – ​​whether in a SIPP or another investment vehicle – could reach £698,000 in 40 years (or by age 61 when using our example above), assuming an 8% return. This can contribute to early retirement.

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

Better time to start

While it's great to start a SIPP at age 21, or when you start working, it's better if a parent or family member can open a SIPP for a child at birth. Contributions are capped at £2,880 per year, or £3,600 when accounting for tax relief.

Of course, the benefit here is time. Using the same example as above (£200 per month including tax relief and an 8% annual return), a SIPP starting at birth could amount to £3.6 million by age 60.

Where to invest long term?

Not all of my investments are forever. I will hold a lot of them until they reach a valuation that I consider fair, or even excessive, and then sell them. But what about long-term investments?

Well, one of them Scottish Real Estate Investment Trust (LSE: SMT). It's an investment trust that I think everyone should take into consideration. It's more volatile than some of its counterparts, but it also offers a lot of long-term potential.

The trust typically invests in disruptive technologies with companies like SpaceX, Nvidia and Mercadolibre Among the largest holdings. As any market follower knows, these companies (at least listed) are usually more volatile than average FTSE 100 index Stock, but recent performance has been great.

Although past performance is no indication of what will happen next, fund managers have an impressive reputation for picking the next big winners before most of us have even heard of them.

One risk is leverage (borrowing to invest). This magnifies gains, but it also magnifies losses when things go the other way. But no investment is perfect. This is something I like in the long run and I think it's worth considering.