Skepticism Required with Roth IRA Calculators

A good article from Investment News on the use of calculators for Roth IRA conversion calculators.

Deciding whether to convert to a Roth IRA is fairly complex.  There are a number of variables that come into play such as tax rates, investment returns, inflation rates, etc.

Faulty assumptions for any one of the factors will produce faulty results and possibly poor decisions.

Free, web-based calculators are often less robust than those used by financial advisors.

Calculators and other analytical tools can be very useful, but the results they produce should not be the sole criteria for any financial decision.

Souce: Investment News

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I could not agree more with this article. Roth conversions are so complicated that to think that a calculator could give you the answer makes me chuckle...