I spend $300,000 per year, am I getting max benefits?
Feb 13, 2018, 1:05 pm
#1
Original Poster
Join Date: Feb 2018
Posts: 3
I spend $300,000 per year, am I getting max benefits?
Hello everyone, I'd appreciate a critique/advice on how I'm spending to gain max points. I'm currently using two American Express cards and I want to make sure I'm maximizing my benefits. Here's how I'm spending the roughly $300,000 per year in business expenses...
1. AMEX Business Gold (I'm using this for 80% of purchases because I can choose 3X on advertising and I get 2X in four other categories. So I get an extra 300,000 Membership Rewards points or so per year because of the 3X on advertising. Then there is 2X on shipping, etc, and 1X on general purchases)
2. AMEX Hilton Honors (We run events around the country at Hilton Properties, so I figured you couldn't beat the 12X points on Hilton Properties. Plus, as a family, we only stay at Hilton properties. Also, we get 6X on eating out, gas, and Whole Foods which is the only place we shop. We also get moved to Platinum status after 40K spend so I purposely shift spending to this card so I will qualify for Platinum)
I'm open to different suggestions on "HOW" I'm spending our money on these cards. I have a friend who spends around a million per year and is on a 2% cash back card who just gets a $20,000 check every year via a Chase Ink Card. He loves the card but I think they changed that structure and he's grandfathered in at the moment. I'm open to just moving to a cash back card also. Any thoughts on this scenario? Would you all do anything differently?
The way we use the points is we simply build up the points in Membership Rewards, and then transfer for flights only. As for Hilton Points, we actually use them at properties for family vacations. So we are using the points and always looking for the best leverage.
1. AMEX Business Gold (I'm using this for 80% of purchases because I can choose 3X on advertising and I get 2X in four other categories. So I get an extra 300,000 Membership Rewards points or so per year because of the 3X on advertising. Then there is 2X on shipping, etc, and 1X on general purchases)
2. AMEX Hilton Honors (We run events around the country at Hilton Properties, so I figured you couldn't beat the 12X points on Hilton Properties. Plus, as a family, we only stay at Hilton properties. Also, we get 6X on eating out, gas, and Whole Foods which is the only place we shop. We also get moved to Platinum status after 40K spend so I purposely shift spending to this card so I will qualify for Platinum)
I'm open to different suggestions on "HOW" I'm spending our money on these cards. I have a friend who spends around a million per year and is on a 2% cash back card who just gets a $20,000 check every year via a Chase Ink Card. He loves the card but I think they changed that structure and he's grandfathered in at the moment. I'm open to just moving to a cash back card also. Any thoughts on this scenario? Would you all do anything differently?
The way we use the points is we simply build up the points in Membership Rewards, and then transfer for flights only. As for Hilton Points, we actually use them at properties for family vacations. So we are using the points and always looking for the best leverage.
Feb 13, 2018, 1:39 pm
#2
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,954
Welcome to Flyertalk.
Comparing points to cashback is complicated, because the value of points depends on your specific redemption patterns. The value of cashback earned through business spending may be reduced by tax considerations, which are better discussed with your CPA than with strangers on an Internet forum.
When you transfer Membership Rewards points for flights are you flying domestic or international, economy or in a premium cabin? At one extreme (domestic economy) you might do as well or better with a cashback program. At the other extreme (international premium), points are almost certainly better. In between requires careful calculation based on how you actually redeem (which may be different than how you intend to redeem.)
You could increase your rewards on $50,000/year of general spending by adding this free card:
https://www.flyertalk.com/forum/amer...31-2017-a.html
Comparing points to cashback is complicated, because the value of points depends on your specific redemption patterns. The value of cashback earned through business spending may be reduced by tax considerations, which are better discussed with your CPA than with strangers on an Internet forum.
When you transfer Membership Rewards points for flights are you flying domestic or international, economy or in a premium cabin? At one extreme (domestic economy) you might do as well or better with a cashback program. At the other extreme (international premium), points are almost certainly better. In between requires careful calculation based on how you actually redeem (which may be different than how you intend to redeem.)
You could increase your rewards on $50,000/year of general spending by adding this free card:
https://www.flyertalk.com/forum/amer...31-2017-a.html
Last edited by mia; Feb 13, 2018 at 1:44 pm
Feb 13, 2018, 3:11 pm
#3
Join Date: Jun 2014
Location: FL
Programs: AA EXP, Hyatt Diamond, SPG Plat, IC Plat Amb, HH Diamond, Marriott Platinum
Posts: 1,299
Hello everyone, I'd appreciate a critique/advice on how I'm spending to gain max points. I'm currently using two American Express cards and I want to make sure I'm maximizing my benefits. Here's how I'm spending the roughly $300,000 per year in business expenses...
1. AMEX Business Gold (I'm using this for 80% of purchases because I can choose 3X on advertising and I get 2X in four other categories. So I get an extra 300,000 Membership Rewards points or so per year because of the 3X on advertising. Then there is 2X on shipping, etc, and 1X on general purchases)
2. AMEX Hilton Honors (We run events around the country at Hilton Properties, so I figured you couldn't beat the 12X points on Hilton Properties. Plus, as a family, we only stay at Hilton properties. Also, we get 6X on eating out, gas, and Whole Foods which is the only place we shop. We also get moved to Platinum status after 40K spend so I purposely shift spending to this card so I will qualify for Platinum)
I'm open to different suggestions on "HOW" I'm spending our money on these cards. I have a friend who spends around a million per year and is on a 2% cash back card who just gets a $20,000 check every year via a Chase Ink Card. He loves the card but I think they changed that structure and he's grandfathered in at the moment. I'm open to just moving to a cash back card also. Any thoughts on this scenario? Would you all do anything differently?
The way we use the points is we simply build up the points in Membership Rewards, and then transfer for flights only. As for Hilton Points, we actually use them at properties for family vacations. So we are using the points and always looking for the best leverage.
1. AMEX Business Gold (I'm using this for 80% of purchases because I can choose 3X on advertising and I get 2X in four other categories. So I get an extra 300,000 Membership Rewards points or so per year because of the 3X on advertising. Then there is 2X on shipping, etc, and 1X on general purchases)
2. AMEX Hilton Honors (We run events around the country at Hilton Properties, so I figured you couldn't beat the 12X points on Hilton Properties. Plus, as a family, we only stay at Hilton properties. Also, we get 6X on eating out, gas, and Whole Foods which is the only place we shop. We also get moved to Platinum status after 40K spend so I purposely shift spending to this card so I will qualify for Platinum)
I'm open to different suggestions on "HOW" I'm spending our money on these cards. I have a friend who spends around a million per year and is on a 2% cash back card who just gets a $20,000 check every year via a Chase Ink Card. He loves the card but I think they changed that structure and he's grandfathered in at the moment. I'm open to just moving to a cash back card also. Any thoughts on this scenario? Would you all do anything differently?
The way we use the points is we simply build up the points in Membership Rewards, and then transfer for flights only. As for Hilton Points, we actually use them at properties for family vacations. So we are using the points and always looking for the best leverage.
Feb 13, 2018, 3:16 pm
#5
Original Poster
Join Date: Feb 2018
Posts: 3
Welcome to Flyertalk.
Comparing points to cashback is complicated, because the value of points depends on your specific redemption patterns. The value of cashback earned through business spending may be reduced by tax considerations, which are better discussed with your CPA than with strangers on an Internet forum.
When you transfer Membership Rewards points for flights are you flying domestic or international, economy or in a premium cabin? At one extreme (domestic economy) you might do as well or better with a cashback program. At the other extreme (international premium), points are almost certainly better. In between requires careful calculation based on how you actually redeem (which may be different than how you intend to redeem.)
You could increase your rewards on $50,000/year of general spending by adding this free card:
Comparing points to cashback is complicated, because the value of points depends on your specific redemption patterns. The value of cashback earned through business spending may be reduced by tax considerations, which are better discussed with your CPA than with strangers on an Internet forum.
When you transfer Membership Rewards points for flights are you flying domestic or international, economy or in a premium cabin? At one extreme (domestic economy) you might do as well or better with a cashback program. At the other extreme (international premium), points are almost certainly better. In between requires careful calculation based on how you actually redeem (which may be different than how you intend to redeem.)
You could increase your rewards on $50,000/year of general spending by adding this free card:
These are great points thank you!
Feb 15, 2018, 9:28 am
#6
Join Date: Jun 2014
Location: PSC
Programs: Hilton Diamond/IHG Platinum/DL Plutononium
Posts: 1,728
The business gold reward card is fantastic for those bonus categories as you have discovered. I'm a big fan of diversifying -- some Amex points, some Chase points and some Citi Points, as well as cashback for when I'm not looking to add more points to my accounts.
The only 2 amex cards I would strongly recommend is the Blue Business Plus (as mentioned by Mia) and also the SimplyCash Plus, which I use for 5% back at office supply stores and 3% back on Cloud Computing (I have a big bill with Microsoft Azure and this card is fantastic for that). The only downside is it's cash back and you're not going to be getting 5 cents per point in value like you can with the MR points, but there is some beauty in having the cash back come right off the bill at the end of the month.
The only 2 amex cards I would strongly recommend is the Blue Business Plus (as mentioned by Mia) and also the SimplyCash Plus, which I use for 5% back at office supply stores and 3% back on Cloud Computing (I have a big bill with Microsoft Azure and this card is fantastic for that). The only downside is it's cash back and you're not going to be getting 5 cents per point in value like you can with the MR points, but there is some beauty in having the cash back come right off the bill at the end of the month.
Feb 15, 2018, 2:17 pm
#7
Join Date: Nov 2013
Location: PHX, SEA
Programs: Avis President's Club, Global Entry, Hilton/Marriott Gold. No more DL/AA status.
Posts: 4,422
Chase Sapphire earns 3 points per dollar on travel, that's surely a good thing if travel is a major expense of yours. And for cash back, the Costco Visa (no annual fee if you are a Costco member) is 3% cash back on travel and restaurants.
Feb 15, 2018, 2:47 pm
#8
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,954
Feb 15, 2018, 3:21 pm
#9
Join Date: Nov 2014
Location: LGB
Posts: 1,205
2. AMEX Hilton Honors (We run events around the country at Hilton Properties, so I figured you couldn't beat the 12X points on Hilton Properties. Plus, as a family, we only stay at Hilton properties. Also, we get 6X on eating out, gas, and Whole Foods which is the only place we shop. We also get moved to Platinum status after 40K spend so I purposely shift spending to this card so I will qualify for Platinum)
Feb 17, 2018, 7:51 am
#10
Join Date: Mar 2009
Location: PHX
Programs: HHonors Lifetime Diamond, UA Million Miler Gold, Marriott Platinum
Posts: 1,142
Feb 17, 2018, 7:53 am
#11
Join Date: Mar 2009
Location: PHX
Programs: HHonors Lifetime Diamond, UA Million Miler Gold, Marriott Platinum
Posts: 1,142
I am not really a fan of this card as I have Lifetime Diamond (not Platinum on Hilton by the way), however if I did not that may change my view. In the OP situation where he openly states he is moving spend to the Hilton card to obtain the status, this would eliminate the issue as the AF covers the Diamond status and the returns on the card make it essentially free or paid to have the card.
Feb 17, 2018, 11:34 am
#12
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,954
I was responding to Gig103's post which mentioned that Sapphire Reserve offers 3 points per dollar in the Travel category. INK Preferred has the identical feature for a lower annual fee. Reading James L's preceding posts for context I understand this is primarily business travel. If this is accurate, it's cleaner to use another business card rather than a personal card.
We don't have enough information to judge how important this is in James' circumstances, but giving employees cards on your personal account is imprudent.
We don't have enough information to judge how important this is in James' circumstances, but giving employees cards on your personal account is imprudent.