Combining AMEX Schwab Platinum and Everyday Preferred

[Anonymous]

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@GeorgiaBulldog wrote:

Schwab Platinum can also turn a Blue Business Plus into a 2.5% on everything card.

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Didn't even think about that!

[Anonymous]

the answer is yes.  MR accounts are banked by cardmember not card product.  However, the type of MR account you have (First, etc) is by the highest ranking card tied to your SSN.  I have a First account.  And yes people have them all..I have all the flavors and variety of AMEX cards...why because I am military and don't have to pay the fees...many military have this.

[longtimelurker]

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@Anonymous wrote:

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@wasCB14 wrote:

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@Anonymous wrote:

You can cash out your MR points to Schwab at 1.25 cents each if you have the Schwab Platinum. 

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I have the Schwab Platinum. Yes, I could potentially transfer all my MRs at 1.25 cpp, including those earned on other cards.

That said, it seems a very inefficient approach.

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I'm curious to know more about the inefficiency claim.

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I think all that is meant here is that you can, (in some cases!) by transferring to partners, earn more than 1.25cpp.   So perhaps "wasteful" rather than inefficient.

[wasCB14]

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@longtimelurker wrote:

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@Anonymous wrote:

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@wasCB14 wrote:

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@Anonymous wrote:

You can cash out your MR points to Schwab at 1.25 cents each if you have the Schwab Platinum. 

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I have the Schwab Platinum. Yes, I could potentially transfer all my MRs at 1.25 cpp, including those earned on other cards.

That said, it seems a very inefficient approach.

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I'm curious to know more about the inefficiency claim.

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I think all that is meant here is that you can, (in some cases!) by transferring to partners, earn more than 1.25cpp.   So perhaps "wasteful" rather than inefficient.

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It involves $645 in gross annual fees, and the associated perks and credits largely benefit travelers. If a person just wants cash back, there are good low/no AF solutions.

[wasCB14]

I try to imagine someone for whom this combo would make sense, and it's not clear.

Someone wants to use an Amex as much as possible...yet is okay with the weaker protections on EDP vs. Platinum.

This person travels enough that 5x on airfare is great...but this person doesn't need delay or cancellation insurance. Maybe a business traveler who gets reimbursed.

This person either doesn't like frequent flyer programs, or doesn't like MR transfer options...yet still wants to use Amex heavily rather than a CSR or Prestige.

This person likes 5x on prepaid hotels...but is willing to give up elite perks that those rates don't qualify for (AFAIK). Not likely a business traveler.

Someone with good credit, but who is okay with earning only 1.875% on off-category stuff.

[Anonymous]

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@wasCB14 wrote:

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@longtimelurker wrote:

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@Anonymous wrote:

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@wasCB14 wrote:

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@Anonymous wrote:

You can cash out your MR points to Schwab at 1.25 cents each if you have the Schwab Platinum. 

---

I have the Schwab Platinum. Yes, I could potentially transfer all my MRs at 1.25 cpp, including those earned on other cards.

That said, it seems a very inefficient approach.

---

I'm curious to know more about the inefficiency claim.

---

I think all that is meant here is that you can, (in some cases!) by transferring to partners, earn more than 1.25cpp.   So perhaps "wasteful" rather than inefficient.

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It involves $645 in gross annual fees, and the associated perks and credits largely benefit travelers. If a person just wants cash back, there are good low/no AF solutions.

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But then again, $550 AF a year with $200 in fee credits, $200 in Uber credits, free Delta lounges, Priority Pass lounge access, hotel perks,  earning 5x on hotel and airline purchases, plus $1,250 transferred to your IRA to invest with 100,000 points isn't a bad deal. 

[wasCB14]

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@Anonymous wrote:

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@wasCB14 wrote:

It involves $645 in gross annual fees, and the associated perks and credits largely benefit travelers. If a person just wants cash back, there are good low/no AF solutions.

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But then again, $550 AF a year with $200 in fee credits, $200 in Uber credits, free Delta lounges, Priority Pass lounge access, hotel perks,  earning 5x on hotel and airline purchases, plus $1,250 transferred to your IRA to invest with 100,000 points isn't a bad deal. 

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I'm not challenging the value of the Platinum for frequent travelers at all. I've kept mine. I'm challenging the idea that a frequent traveler...someone who actually uses those perks...will efficiently earn and redeem for cash as you suggest at 1.25 cpp.

Do they fly Delta? Redeem on Delta or Flying Blue (and maybe others that don't come to mind).

Fly another airline? Use a codeshare partner that participates with MR. Or put most spend on SPG or a non-Amex card.

Stay at Starwood/Ritz/Marriott? Spend on SPG to avoid the bad transfer ratio.

Stay at Hilton? Hilton transfers are now 2 HH per 1 MR. Or earn HH directly and maybe get Diamond status with a Hilton cobrand.

Also, AFAIK there have never been any 100k MR Schwab offers. The regular is 60k (up from 40k when it was $450). I went with Schwab not just for the loyalty credit, but also to remain eligible for a 100k (or even more) offer in the future.

Or are you saying there's a 40k EDP offer, that combined with 60k on Schwab Platinum, would give 100k?

[Anonymous]

I'm saying if one earned 100,000 points through spending, $1250 isn't bad since you're earning 5x on airlines, 4.5x at grocery stores, 3 at gas stations, and 1.5 everywhere else. 

I think investing $1,250 for 7 months until you want to go on your vacation would be the best value since the money grows far more than the extra earnings you'd get from a transfer partner. Let's say your stock grows from $1,250 in value to $1,700 during that period.. A 27% gain. Delta points are usually worth about 1 cpp, so you'd only get $1,250 in ticket value if you transferred MR's to that partner. 

[wasCB14]

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@Anonymous wrote:

I'm saying if one earned 100,000 points through spending, $1250 isn't bad since you're earning 5x on airlines, 4.5x at grocery stores, 3 at gas stations, and 1.5 everywhere else. 

I think investing $1,250 for 7 months until you want to go on your vacation would be the best value since the money grows far more than the extra earnings you'd get from a transfer partner. Let's say your stock grows from $1,250 in value to $1,700 during that period.. A 27% gain. Delta points are usually worth about 1 cpp, so you'd only get $1,250 in ticket value if you transferred MR's to that partner. 

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My last MR redemption was at 4.6 cpp, so 100,000 MRs at that (admittedly not easily repeatable) valuation is $4,600. I have other cash for IRA contributions.

27% over 7 months is 3.47% per month, or 50.6% per year. That is an aggressive assumption, to put it mildly. If 1000 people each pick one or two different stocks and keep them a month, hundreds of people will earn 3.47% or more over that time. It would be a mistake for them all to think it's all from skill and easily repeatable.

[Anonymous]

With the way the stock market is going lately, earnings on your MR's transferred to Schwab @ 3.47% per month seems attainable. Over the course of 20 days, that's a 0.17% gain per day without dividends. 

I see what you're saying though, getting 4.6 cpp on MR's is possible, but probably not for my traveling style. I don't travel internationally (although I want to go to Switzerland). Most likely the only international travel I'll do within the next five years is the Bahamas or Canada, so I think 2 cpp or more is out of the question.