My Philosophy: Most points don't pay dividends. Many investments do. Keep your cash in the market and churn & burn as far as miles go, as long as you're redeeming somewhere near the median redemption value.

I only avoid using points when I want to choose a different hotel for convenience or if I'm at a conference/event related to a sole proprietorship, which is a business expense. If there is any possible way to use points, I will, unless it is a business expense, out of convenience, or the redemption value is absolutely terrible (well below the median value).

Likewise, if I can get a direct flight on Allegiant for $150 RT vs. 25,000 in miles, it's a no-brainer. I would never like to use airline miles for less than 1 cpm when compared with a reasonable cash alternative, but I'll redeem all day long at 1.5+ cpm to take kids to Disney Parks. Doing so really helps us afford trips we might not otherwise be able to take at this stage in our family life and careers.

I, too, recognize that I am in the minority, but I frankly would rather be able to take the family on vacations AND fully fund our IRAs than to stockpile points for a trip I'm not likely to take until 10-20 years in the future. By then, I may just snag a deal on TravelZoo and pay cash (assuming the Zoo is still around).