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.

Values will almost always decline over time, so I would use them whenever needed unless saving for something big.

AA has a change fee for saver award tix
 

See aa website

http://www.aa.com/i18n/AAdvantage/re...ating%20Awards

Also, miles do depreciate just link the green back.

I actually think of miles more like milk...they will just start to rot if you let them sit!

Eureka. I knew all this reading would pay off. Did you say date changes are free on AA award tickets. I have 395k aadvantage miles and want to plan a trip next year but was too uncertain .

Does that include cancelations or only changes of original itinerary?

If this is better suited to another forum, after a simple answer feel free to move it where you deem best.

TIA

For AA regular members, only a date change is free. Any other changes like itinerary, change in partner airlines, destination ,etc have a fee.

Use 'em when you can. Exception being if you can keep a cheap flight in lieu of using miles.

Save or Use Miles
 

I always like to have enough miles available for two international tickets at any given time. I know that I am not going away in the near future but I am still accumulating miles for when the time comes. Why not build up the mileage accounts for when the time is right!

I have about 1 Million miles in my AA accounts for my wife and I. Maybe I should just book first class to Tahiti and be done with it.

tahiti
 

That sounds like a nice use of some miles! If you go to Tahiti, make sure to visit Moorea which is a quick ferry ride away!

Does that mean cancellation is free also. If so can people without status speculate or open multiple itinerarys ?

No. There is a redeposit fee for your miles to go back to your account (at least for general members): "When requesting a reinstatement, there will be a $150 processing charge per account for the first award. Any additional awards reinstated to the same account at the same time will have a $25 USD per award."

However, if you make long range plans and there are schedule changes, you may be able to cancel the award and get the miles back for free instead of accepting changes. (I did this once when they made a connection way too tight for my elderly parents travelling alone.)

To join the chorus - use them sooner rather than later. Award charts devalue over time, taxes go up, airlines get acquired. The latter does not usually result in miles disappearing but the redemption opportunities do not always remain the same after an acquisition.

I'd use them now. My discount rate on miles is very high, especially as I suspect they'll continue to be devalued across all airlines. Add to that AA's issues and I think your mum should enjoy them now.

I would never bank miles for 5plus years in the future. The worst thing LIKELY to happen is that the miles will almost certainly be greatly devalued. The worst thing that COULD happen is that she doesn't retire or she gets injured or she dies and never gets to take the trip at all. A guy I know was scheduled at the post office to retire on Sept. 14, 2001. He had a robust stock account with Enron and Worldcom and all those, so why not grab the early retirement. He, is needless to say, still working at that same post office; indeed, he waited on me within this month. Stuff happens. And it can happen very suddenly. Couple the chance of illness and old age making it more difficult to travel, with the near-certainty that the miles will lose value, and it's an easy call to use the miles for vacations or other travel NOW.

My rule for Euchre and burning miles is the same: Smoke 'em if you've got 'em.

Of all miles, AA miles are probably the most volatile out of the big 4 carriers. UA/CO/US aren't as generous as AA and aren't as financially insecure, so an impending devaluation is pretty likely.

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I would argue AGAINST an impending AA devaluation because of AA's alleged financial insecurity. AA will want to keep their frequent flyers loyal in the face of a potential bankruptcy/reorg and should (IMO) keep their program as is for the next year or two. I'll be sure to tell AA this when they contact me to get my opinion.

Still, AA miles are a risk, whereas UA/CO just updated their award chart this summer and just recently announced how earning will work after Jan. 1, so it's reasonable to expect that to stay the same for at least a couple years.

I'm on the fence on this. The truth of the matter is that none of us really know what's going to happen. I believe that we won't see an AA devaluation for a while simply because they need to stay competitive and their entire FF program is the one thing they have going for them right now.

So if I have a choice this Spring DL ( 340k SMS ) direct NYC ATH I should use some of my AA (395 k) miles for a connection instead?