At what value would you consider cashing out MR

[EBP]

My emphasis is on cash back, as I do little traveling. However, at .5 cents cash value, I just can't bring myself to cash out MR at that rate. Potential travel is worth more than that to me.

At what value would you consider cashing out your MR?

 

[Ttitle]

Did you consider this option?

http://www.schwab.com/public/schwab/investing/accounts_products/credit_cards

This would give you 1.25 dollars for 100 MR points. I haven't done this, but it seems a lot better than cashing out at .5.

 

[OK216]

My emphasis is on cash back, as I do little traveling. However, at .5 cents cash value, I just can't bring myself to cash out MR at that rate. Potential travel is worth more than that to me.

At what value would you consider cashing out your MR?

I'd still prefer to use them for travel, but it would have to be at least 1cpp (equal to UR cash value) for me to consider cashing out, barring some kind of huge financial emergency.

 

[CWAL]

When that Schwab card was announced, it was one more reason I'm sad to have been shut down by Schwab. 1.25cents for MR is semi reasonable for me as a backup option, especially in times when rewards balance are much greater than expected redemptions.

I would never cash them out for less than a cent each. I value them at a cent for my calculations when deciding which cards to use when/where.

 

[RollPlayer]

Ethical grey area here, but the miles can also be sold to a broker. Google around, but I think the rates are about 1.2 cents per point. Definitely not as much value as using for travel, but great if you dont have any short or medium term need for points and want cash.

 

[Jedi]

I plan to cash some Amex pts at 1.25 cents via Schwab in a few years. I think this is a good deal if just sitting on good size stash. Earning just 8% return or so on the money means 1.35 value after one year, approx. 1.45 about 2 years, etc. So if too much excess points, jettisoning some seems prudent.

I struggle to find the value with Amex in my situation to make the points that useful except with nice transfer bonuses like 50% BA. I have so many Citi TY for Singapore. 100,000 Amex bonus is $1,250 cash and you can only get 1 cent for Chase points, that are far more useful for United, Hyatt and the soon to be 1.5X for travel with Sapphire Reserve in hand.

 

[projectx]

1 cent/point. I'm kind of in the same boat as you... I try to collect more cash than I do points. For MR points, I look for redeeming for gift cards that have 1c/pt value at retailers that I'm going to make purchases at anyway, and then just transfer cash from my checking into the vacation fund. Not the best use of the points, but for my purposes over the next year or two it works.

 

[JDub]

I think Jedi makes a good point bringing the time value of money into the equation. Right now I wouldn't cash them out for less than 1.5 cents but if I was sitting on over 300k MR points I would consider cashing in via Schwab. However, I took advantage of the recent 40% transfer bonus to BA so I am rebuilding my balance.