Use miles now, or save for the future?
 

My mother has about 95K AAdvantage miles, and she was wondering if it's a good idea for her to just use them all now, or save some/most of them for the future (say, 5-10 years from now)? She's planning to retire by then, and since her income will be significantly lower she would have the miles to travel with at that time.

What do you think, use them now or save for retirement in 5+ years?

There's no way to tell if the award charts might change in 5-10 years. What might be a 25K award now could be a 30-35K award in years to come, and then you also have the risk that availability could change. I wouldn't hold on to them strictly from the point that they may be devalued in years to come. You also have the risk that fees for booking award travel could increase, too.

I'd look at the travel she's likely to do in the coming years, and use the miles whenever the paid ticket price for her trip(s) is expensive. For example, if she travels domestically, don't waste the miles on a $200 ticket, but if it's $500 or more, then pull the trigger. (If she travels internationally or in premium classes, the numbers will differ).

Also, since date changes are free on AA award tickets, use miles when plans are uncertain.

Finally, I think it's always a good idea to keep 25K in the bank, for when you have an last minute emergency need to travel on short notice when prices tend to be very high.

Just remember if she does hold on to them, she needs some activity every 18 months or they will expire.

I certainly don't see miles become worth more in the future - that would be at odds with historical trends.

I wouldn't use them just to use them, but I would certainly use them now in the right opportunity rather than paying for tickets today and "saving" miles for 5 years from now.

If there is a defined goal in 2 years to burn 150K to go to Australia, for example, then "saving" for that makes sense. As long as you realize that in 2 years that trip might (likely will?) be more points.

I'm quite glad I burned a million miles on US from '03-'07 as I'd probably only get 50-70% of the trips today (at best).

the advice above is good.....ff mi continue to depreciate & i don't think it will stop....so use them when it makes sense considering the $s saved....

the bw & me have ~450k aa left from ~ 6.6mm aa....i recently spent 75k for family tickets to save ~ $1500, however for others i would have bought the tickets, the difference is whether they can use/need aa mi....

I always try to have 25k in the bank with some airline even after I go on a burning spree for the same reason.

+1, but considering making my floor 50K. Hard to get 25K tix when you need them these days!

Definitely earn and burn. Increases in the value of miles in the future are extremely unlikely and miles do not earn any interest.

I agree with what others have said. Once my mileage balance reaches the amount needed for the award I want, I make plans to use those miles within a year.

Same. I would use miles for any travel opportunity that I can. Usually my planning doesn't permit their use, but I'd burn them if I could. They're not liquid, unlike the cash you'd spend on a ticket instead. And they don't appreciate like an investment.

The only reason to "save" them is if at 95k miles she's a few short of where she'd really like to go, but needs say 100k for the flight.

(And for a more frequent flier, saving some miles for upgrades is worth it of course).

I know the prevailing opinion is to "burn once earned", but I always keep about 200k in my balance for emergency flights. Yes, the miles will depreciate, but I would rather have that emergency fund than pay for same-day fares.

Keeping miles over the long term is bad. I am always trying to use up miles.

Apologize for one more thread move, but this thread goes to the heart of a strategy for using airline miles and is therefore ideal for the MilesBuzz forum. Thanks, Ocn Vw 1K, Moderator, TravelBuzz.