I'd like to start investing a small % of money each year. Have heard opening a SIPP and investing in global index trackers is a good idea.
I have 2 concerns. 1) If the majority of my income is solely classed as gambling winnings and as such not taxable, I am classed as a non-earner and my pension contribution limit is £3,600 gross - a payment of £2,880 to which the taxman adds £720. 2) Won't be able to access the funds until I'm around 60.
Initially £3,600/yr would be alright but ideally I'd be looking to invest much more than that in later years.
I'm not sure I quite understand why people even bother with SIPPs? Is it just because they get a 20% or 40% boost from their tax and means they are investing more?
Does it not just make sense for me to invest in S&P 500, FTSE 100, Nikkei, DAX etc. on my own terms, meaning I can have access to my funds whenever and I'm not capped at how much I can invest?
Sorry if I'm missing something obvious. I've no experience with pensions or stocks.