Did you know that over 76% of internet users participate in an online community such as a blog, forum or discussion board? Joining online communities can be a fantastic way to gain new perspectives. At AAII, we understand the role an online community can play in helping people invest with confidence, especially during volatile markets. With seven special interest groups (SIGs) on the AAII Community and more to come, there is something for every type of investor.

In a recent Investor Update email AAII Journal editor Charles Rotblut wrote that now may be an ideal time for a Roth conversion since the tax cost of moving shares from a traditional to a Roth IRA decreases as the share price falls. Members started discussing this in the Retirement Withdrawals Community, and wow, did people weigh in:

“Conversions are least costly when done before RMDs start.”
“A Roth is a good way to pass on a legacy if that’s in your plan.”
“I actually did this a few days ago. One of my biotech funds has dropped 25% this year, so I converted the remaining shares in my rollover IRA to my Roth account.”
“Do not forget to take into consideration that a Roth conversion could push you into a higher tax bracket.”

It was a lengthy discussion that involved over 40 replies. This is just one example of how the AAII Community connects individual investors.

If you’re interested in joining a community of individuals passionate about investing and navigating the uncharted territory of retirement, log in to the AAII Community with your AAII member credentials and join the Retirement Withdrawals Community today.

Field Notes From the Chapters

AAII Local Chapters are going through a once-in-a-generation evolution whose benefits are trickling down to the rank-and-file members. In a nutshell, your AAII membership entitles you to join not just your local chapter, but any and all chapters that appeal to you. Simply surf the AAII Local Chapter Communities, using the orange link at the top to sign up for chapter emails. Bingo, you’re in! Through the magic of livestreaming, you can attend any meeting in real time, in the comfort of your own castle, via Zoom. You’ll get to connect with great speakers like Paul Merriman, Sam Stovall, Bruce Johnstone, Lindsey Bell and more. Want to dive deeper? Volunteer for an open position on your chapter leadership team. Our prediction: You’ll get back much more than you give. Log in at https://community.aaii.com and select the Local Chapters button under Quick Links on the right.

—Hollis Wagenstein-Hurturk, AAII Chapter liaison

Discussion

KENNETH L from NC posted over 3 years ago:

There are 2 reasons to consider pre-RMD conversions: 1. a market downturn provides a lower tax cost during the dip, while recovering value over the next few years on a tax-free basis 2. tax rates are near a century low - the lowest since the "startup" first few years of the income tax more than a century ago. With the government creating massive debt that will need to be repaid, what is the likelihood of the lowest tax rates in American history (excepting the "startup / initial adoption" first three years) will somehow stay low or go even lower? Logically the opposite - huge future tax increases - are far more likely. So pay a bit more now at lower rates, or wait to pay far more when the RMD rules force you to put increasingly more money each year within reach of the IRS? I am converting as much as possible without pushing into the next higher tax bracket while I am below both the maximum Social Security claiming age and the new RMD (required minimum distribution) age. When I reach the RMD age I plan to use the remaining pre-tax funds subject to RMD for QCD (qualified charitable distributions).

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