Originally Posted by
mikeef
Kudos on pulling that off. I've made the calculation for myself a bunch of times but have never determined that it is worth it (for me). Glad you're making it work!
Correct my math, though. $150K @ 1 SM/$ = 150,000
$100k @ 1.5 SM/$ = 150,000
Total 300,000 SM
Mike
Edited to add: Ah !@$%!#*&$$. I didn't realize that I would get 1.5X on >$150,000. Sigh, back to the calculator...
Especially as interest rates increase, I'm convincing myself not to do this.
300K SkyMiles for $4675 in cc fees - already I'd be down $1675K based on my valuation of SM at 1c, plus I'd have more money tied up in SM and I already have too many.
Next, realistically I'd have the cash with the IRS for three months. Assuming I pull it from savings accounts and not from a HELOC, I'm likely to lose at least .75% in interest - potentially more if rates keep increasing. $250K * .0075 = $1875.
So $1875 plus $1675 to have DM for two years, with one more set of DM choice benefits? I don't think that's worth $3550. When rates were basically zero, this was an easier calculation ($2K for two years of DM feels worthwhile to me, but borderline).
(really, my numbers will be a little different since I'll certainly charge $25K on the card to get the Platinum waiver, so really the delta is $225K)