Originally Posted by pgary

I have received a large number of miles from broker offers. I have never opened any of these accounts with cash. I simply had the new broker transfer stock postions from another account I owned, or, in the earlier days, I simply deposted old stock certificates I had, once I began to trust that my investment was safe keeping them in broker accounts. Easy. The only cost is the occasional fee from the old broker to do the transfer out. This has never been more than $50, which is cheap for 25,000 miles.

Those who don't have stocks to deposit or transfer probably ought to start considering investing. Interest rates on safe deposits after taxes never keep up with inflation. For conservative people, there are investments out there that are reasonably stable, offer potential capital appreciation, and produce attractive income from dividends. Perhaps opening a TD Ameritrade or Fidelity account with cash would be a good start in investing that cash in the stock market. Fidelity is better at helping beginners invest one or more of its zillion mutual funds that would meet the risk tolarance and goals of the investor.

I speak from 42 years of successful investing experience.

By the way, your math ignores the fact that miles are not taxable and your 5% is. Your actual cost of miles is the amount you get to keep after you pay taxes on the 5%.