Insured Retirement Plans (IRP), Did I get hosed?

[EliteNinja]

Crossposted in 'Stock Markets' Topic.

This info seems quite relevant

Unfortunately, I already put a $200 deposit into a Transamerica Life Canada plan.

What an Insured Retirement Plan is is this:
You invest in whatever mutual fund you want through an insurance broker. You pay for life insurance on a yearly basis based on your gains. They give you a bonus back which will average out to be higher than the cost of your life insurance in the long-term. Then when you retire, you can take out the money tax-free under their tax umbrella.
Or you can live off the interest when you retire.

But the catch is the Management Expense Ratio (MER). A percentage off your gains paid to the broker. In the longrun, this may be compounded!! Therefore, you may end up with less than if you just had an RRSP or Open Account after tax even though your IRP account is not taxed.

Am I screwed?

I have a spreadsheet which calculates my return compared to RRSPs and Open accounts and the Universal Life (UL) Insured Retirement Plan (IRP) doesn't look like it's coming out on top.

Where do I host the file to post here so someone here can check it?

[lu_hawk]

i don't know anything about this particular plan but generally things like these set up through insurance companies are good for the insurance companies and bad for you. don't let the $200 deposit get you emotional about it and sway your decision because a bad plan will cost you an amount that is much larger than the deposit.