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Miles vs. cash: annuity scenario

Miles vs. cash: annuity scenario

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Old Nov 7, 14, 7:20 am
  #1  
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Miles vs. cash: annuity scenario

Suppose you won a lottery type thing where they pay you out monthly over your lifetime (or at any rate, over a very long period) and were given the choice:

1,000,000 miles a month or:
$20,000 a month

where miles = any American based program including TY, MR, UR etc.

Which one would you go for?
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Old Nov 7, 14, 7:59 am
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Take the cash as a mile will be soon be worth no more than a penny even for creative flyertalk members. I could have flown to paris this week for under $1500 usd in First
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Old Nov 7, 14, 8:16 am
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Cash... no doubt about it! Miles are great, traveling is terrific, but cash is king. For 20K a month, you can buy those flights retail and have plenty of change left over to eat, get a car, pay your mortgage, etc.
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Old Nov 7, 14, 9:14 am
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Cash, obviously. I don't have the time off to burn 12,000,000 miles a year. Even if bought tickets for the extended family.

With the cash, I can maximize the enjoyment of my time off for travel in addition to utilizing the assets for things other than travel (gasp!)
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Old Nov 7, 14, 9:57 am
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wth am I going to do with 12 million miles a year? 400M miles over my expected lifetime?

Cash
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Old Nov 8, 14, 11:15 am
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Smile 20k please

Please send me the money.

I wouldn't care that my tax increased > 68K. I'd be a happy travler with remaining 172K
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Old Nov 8, 14, 11:21 am
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I'll take the money, redeeming a million miles every month would be terribly expensive once you factor in the taxes and surcharges.
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Old Nov 8, 14, 11:48 am
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Imagine the fun of explaining the value to the IRS of the value of the miles as income.....

Cheers!

JudyJFLA
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Old Nov 8, 14, 1:34 pm
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What if it was a mix of cash and miles? Maybe 15000$ and 250000 miles every month would be more attractive?
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Old Nov 9, 14, 5:23 pm
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I'd take the miles. In about a year I could compare myself to
George Clooney.
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Old Nov 9, 14, 6:15 pm
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Cash is king.
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Old Nov 9, 14, 6:23 pm
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Originally Posted by Centurion
Take the cash as a mile will be soon be worth no more than a penny even for creative flyertalk members. I could have flown to paris this week for under $1500 usd in First
Go on...
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Old Nov 10, 14, 5:23 am
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Originally Posted by thorthor View Post
Suppose you won a lottery type thing where they pay you out monthly over your lifetime (or at any rate, over a very long period) and were given the choice:

1,000,000 miles a month or:
$20,000 a month

where miles = any American based program including TY, MR, UR etc.

Which one would you go for?
CASH! Miles/points are fun but I'd like to have some cash to invest.
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Old Nov 12, 14, 1:34 pm
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If you invest $20K/mo at 6%/yr for the next 50 years, that's 75 million dollars.

Cash.
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Old Nov 15, 14, 8:37 am
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Few people would pay two cents per mile unless they they are willing to pay a significant premium for business class travel. Go for the cash!
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