Best Way To Leverage $150K Cash And $100K Amex Limit?
Apr 7, 2010, 1:40 pm
#1
Original Poster
Join Date: Sep 2009
Posts: 46
Best Way To Leverage $150K Cash And $100K Amex Limit?
Here's a challenge to all of you deal addicts out there. This is what you have to work with:
1. $150K in cash connected to a MasterCard debit card (1% rewards).
2. Amex Blue Cash card with a $100K limit.
3. Am only eligible for Amex cards for signup bonuses (foreign resident, no SSN, no Equifax credit file yet).
4. Assume less than $5K total annual spending on credit cards.
The goal is to make the highest ROI (cash or miles) with the above. Investments with unknown risk or ROI cannot be considered.
I was considering the Bank Direct Mileage Checking which would give 15K AA miles/month, but the equivalent value is 1%-1.5% per year. I'm sure you guys could do better than that!
1. $150K in cash connected to a MasterCard debit card (1% rewards).
2. Amex Blue Cash card with a $100K limit.
3. Am only eligible for Amex cards for signup bonuses (foreign resident, no SSN, no Equifax credit file yet).
4. Assume less than $5K total annual spending on credit cards.
The goal is to make the highest ROI (cash or miles) with the above. Investments with unknown risk or ROI cannot be considered.
I was considering the Bank Direct Mileage Checking which would give 15K AA miles/month, but the equivalent value is 1%-1.5% per year. I'm sure you guys could do better than that!
Last edited by hanover.john; Apr 7, 2010 at 3:16 pm
Apr 7, 2010, 1:50 pm
#2
Join Date: Nov 2009
Posts: 737
Here's a challenge to all of you deal addicts out there. This is what you have to work with:
1. $150K in cash.
2. Amex Blue Cash card with a $100K limit.
3. Am only eligible for Amex cards for signup bonuses (foreign resident, no SSN, no Equifax credit file yet).
4. Assume less than $5K total annual spending on credit cards.
The goal is to make the highest ROI (cash or miles) with the above. Investments with unknown risk or ROI cannot be considered.
I was considering the Bank Direct Mileage Checking which would give 15K AA miles/month, but the equivalent value is 1%-1.5% per year. I'm sure you guys could do better than that!
1. $150K in cash.
2. Amex Blue Cash card with a $100K limit.
3. Am only eligible for Amex cards for signup bonuses (foreign resident, no SSN, no Equifax credit file yet).
4. Assume less than $5K total annual spending on credit cards.
The goal is to make the highest ROI (cash or miles) with the above. Investments with unknown risk or ROI cannot be considered.
I was considering the Bank Direct Mileage Checking which would give 15K AA miles/month, but the equivalent value is 1%-1.5% per year. I'm sure you guys could do better than that!
$150K in cash - again, fatwallet may be better. If I were you, I would put some of that in chinese yuan :-) Unless, of course, you are from China and already have assets/$ there. Zero risk, not quite, but almost zero.
I'll let others give more useful information, just thought I would welcome you to FT. (PS, you're not a new member, so daah on that welcome)
Last edited by learningtime; Apr 7, 2010 at 2:49 pm
Apr 7, 2010, 3:22 pm
#3
Join Date: Apr 2004
Location: CA
Posts: 1,303
care to share which checking account offers 4% w/o limitation of debit card usage or maximum balance amounts??
Welcome to the world of FT, and to the universe of figuring out how to earn easy rewards on AMEX. News, it's still work-in-progress. AMEX=no easy/quick ways. You may be able to use balance transfers and deposit the funds in a rewards checking account to yield 4% (not sure of the BT fee on Amex Blue). Check fatwallet.
$150K in cash - again, fatwallet may be better. If I were you, I would put some of that in chinese yuan :-) Unless, of course, you are from China and already have assets/$ there. Zero risk, not quite, but almost zero.
I'll let others give more useful information, just thought I would welcome you to FT. (PS, you're not a new member, so daah on that welcome)
$150K in cash - again, fatwallet may be better. If I were you, I would put some of that in chinese yuan :-) Unless, of course, you are from China and already have assets/$ there. Zero risk, not quite, but almost zero.
I'll let others give more useful information, just thought I would welcome you to FT. (PS, you're not a new member, so daah on that welcome)
Apr 7, 2010, 3:30 pm
#4
Join Date: Nov 2009
Posts: 737
Apr 7, 2010, 7:17 pm
#5
Join Date: Dec 2009
Location: Los Angeles
Programs: Hyatt, Hilton, Marriott // WN, AA, BA, UA, AS // Avis
Posts: 1,314
Remember that BankDirect miles are TAX FREE.
For some (such as myself) that makes a significant difference... if you're in a high tax bracket, you should seriously consider it as an option.
For some (such as myself) that makes a significant difference... if you're in a high tax bracket, you should seriously consider it as an option.
Apr 12, 2010, 6:20 pm
#6
Join Date: Nov 2006
Programs: UA nothing (former multi-year CO Platinum), AA 1M Gold, HH Diamond, National Executive
Posts: 449
I agree and I also see this as my best option now. At 2 cents per AA mile, this works out to 2.4% after tax. With a 39% marginal tax bracket (including state), the equivalent yield is 2.4/0.61 = 3.9%. And it gets me closer to the million mile marker.
Apr 12, 2010, 7:35 pm
#7
Join Date: Apr 2010
Programs: SPG Gold
Posts: 142
I can't agree more. It is exactly what my math is.