Savings & Loan Archives - Tagging Miles

Why I Cancelled my AAA Membership (and You Can, Too!)

March 17, 2015 By Joe Cortez 17 Comments

AAA-Membership-Expired

For some reason, the familiar blue AAA card has been a mainstay on my key chain – although I’m not entirely sure why. I questioned this even further after going to the AAA Ohio Travel Show in January. This made me ultimately ask a critical question: why did I have an AAA membership?

Aside from the free tickets to the “Travel Show” (if you could call it that), I could not think of one instance where I used my card in the last year. For the annual membership fee, what value was my membership giving me? After some deliberation and investigation into the value of my membership, I ultimately let my membership lapse. Here’s why I decided to cut my cord with the Auto Club for good.

Guide Books are Dated – REALLY Dated

Do you remember the last time you walked into an Auto Club location for a map, guidebook, or “Trip Tik?” I can’t remember either. Thanks to the advent of mobile devices and the World Wide Web, travelers can get access to maps and destination information with a number of taps and clicks. Although paper maps are a great analog for when nothing is working, I’m not sure there’s enough paper maps in the world to justify the annual cost of membership.

So what about the guide books? Although my lack of an attention span fed by the digital age could be to blame, I find the guide books for any location to be cumbersome and lacking well-organized information. Instead of the robust, well written guides I get from Lonely Planet or Frommers, the AAA guidebook is a book of lists: lists of attractions, lists of hotels, and lists of destinations with little more short description and rating. If given a choice, I’d rather pick up my iPad before a AAA guidebook.

AAA Member-Only Discounts are Varied (At Best)

Aside from the discounts at hotels, I’m not sure that I have ever used my AAA card to get a discount to an attraction or destination. Trevor has a crafty (and long) set of memberships that he draws from for discounts, while I stick to my standards list of partners as well. These include American Express, Costco, and even some loyalty programs – but that’s a blog for another time. If I can’t find it among that group, it may not be accessible.

What I will say in favor of AAA is that their discount list is long. But trying to find a discount from the Auto Club either requires diving into (yet another) book of lists, or a confusing search on a poorly designed website. Once again, AAA is a victim of technology: until it catches up, the value of my membership is hard to actualize.

Over-The-Road Benefits from Other Paths

AAA is (arguably) best known for their promise of roadside assistance. In fact, there was a point-in-time when the Auto Club was the name to know for stranded drivers. Yet today, service is hard to get by calling: either the phone agents can’t find you in the world, or you may be qualified as a lesser priority depending on your location.

With a number of other memberships offering me roadside service, holding a AAA membership for this purpose alone seems redundant. I also have roadside service through my auto insurance company and American Express. If all else fails, I can use urgent.ly to hail a tow truck Uber-style for assistance. The app uses my GPS location to not only call a tow truck, but also estimate the costs of service. With all these services on demand, why do I need to pay an annual fee as well?

In short: AAA used to be an incredibly valuable membership that could help travelers across a number of needs. Today, AAA feels like the great-grandparents of travel service: archaic, frustrated, and trying desperately to hold on to the way things used to be. With a number of options available to me for my travel services, I have decided to let my membership lapse. That $56.50 is better spent towards my next adventure, wherever it may be.

How do you feel about AAA? Have you pulled the plug, or are you holding on to your membership? Let me know your thoughts in the comments below!

Are We Sustainable Into Our Retirement?

August 10, 2014 By Joe Cortez 4 Comments

Generally speaking, when we use the term “sustainable,” we refer to manufactured spending and points hacking, in order to make sure we don’t kill the best deals. Trevor writes extensively about being a good steward of the community, and “treading lightly” through our hobby. However, the sustainability I wish to write about today is our ability to travel well into our golden years.

The Center for Retirement Research at Boston College National Retirement Risk Index suggests that half of today’s working families will not be able to maintain their standard of living once they retire. Additional data from the research center suggests that the Social Security trust fund will expire in 2033, with the disability insurance trust set to be exhausted in 2016. This leaves personal retirement accounts as the only sure thing left for future retirees.

Or does it? In January, Nomad Wallet cited studies by two major financial firms – HSBC and Transamerica – suggesting that one of the top priorities of retirement is traveling, but many are afraid that falling short of those goals. With the retirement picture uncertain for so many, are we sustainable to travel into retirement?

The good news is that, through proper money management and some creative spending tactics, one can still maintain mileage earnings well into retirement and beyond. This “hobby” that we all subscribe to allows us focus savings that would be reserved for travel to be adjusted to long-term retirement savings.

Both Generation X and the Millennial Generation (including Gen Y) were born and raised on the 401(k) plan, and both see the value of saving now for a long retirement. According to research done by the Transamerica Center, 84% of Gen-X participate in their Employer-Sponsored Retirement plan. And the median age that Millennials began saving for retirement was 22.

While both generations understand that 65 may not a complete target to retire, these groups will continue working because they enjoy what they do – not because they have to. By preparing for long-term stability through wealth management, there may be hope that our generation can keep traveling well into our golden years.

But with the devaluation of points, continual adjustment of sign-on bonuses, and the occasional collection of debt, there’s nothing certain about how far points will carry in the future. Plus, there’s only so much that points will pay for. You can catch the flight and stay at the hotel on points – but how will you eat and play while you’re away?

How are you saving for your retirement goals? How do you plan on financing your retirement when you’re done working? What tips do you have for other Saverocity denizens? I’d love to hear your comments on the state of retirement!

Ed. Note: The Tagging Miles Sunday Editorial is a weekly reflection of the authors opinions. Opinions expressed here are author’s alone, and do not necessarily reflect those of Saverocity.com, or any blogger in the Saverocity family of blogs. No compensation nor incentive was given to mention or link to any product or service in this article.

Exploring the “New” American Express Platinum Benefits

June 30, 2014 By Joe Cortez 1 Comment

Please, stop me if you’ve heard this before. If American Express rolls out new “travel benefits” for Platinum cardholders, and nobody particularly cares, can they still truly be called “benefits?”

As Trevor wrote about earlier, value is a loaded term that can be broadly defined. Which is why the latest American Express e-mail touting their “latest travel benefits” made me revisit my opinion of “value”. For those who did not get the e-mail (or don’t yet hold an American Express Platinum card) here are the three new benefits offered, and my opinions on their actual cash value (or equivalent thereof).

Complimentary Boingo Hotspot Access

Perhaps the most valuable of all the new American Express Platinum benefits, cardholders now get unlimited access to all of Boingo’s hotspots around the world across four devices. Gone are the days that you are forced to tether from your phone to access the internet instead of pay for internet access. Simply create a Boingo account through the link, and complete access to the Boingo network is yours!

Actual value: +/- $59.99 per month. Considering Boingo’s best international plan available to non-cardholders costs $59 per month and only grants 2000 minutes, this looks to be (on paper) one great deal for the frequent traveler. Of course, because the deal was announced last week, we have no working data to go off of (such as data throttling, ease of access, etc). Despite that, this is the only truly new benefit offered, and has me the most excited.

Fee Credit for TSA Pre✓™

Many bloggers have already pointed out how, by getting Global Access the first year you have your American Express Platinum card, you immediately actualize $100 of value from the annual membership fee. With this latest round of improvements, the standalone TSA Pre✓ program is now eligible for the fee credit as well. Use your Platinum card to sign up for Pre✓, and get an $85 credit on your bill.

Actual value: $85, and rapidly decreasing. Let’s be honest – TSA Pre✓, as a stand-alone program, is not very valuable. For $85, you get a shorter application time and more locations to enroll for security expediting. Meanwhile, other international trusted travel programs (like Global Entry) comes with Pre✓ built in. Plus, the bigger benefit of Global Entry, or any of the international trusted travel programs, is the ability to expedite through customs upon landing in the United States. I’m sure someone, somewhere, will get some use out of this benefit – but I wouldn’t waste time burning the fee credit for TSA Pre✓ alone.

Premier Centurion Lounge Access

Despite what the e-mail says, The Centurion Lounge access for Platinum card members is not a new benefit. In fact, Centurion access for Platinum cardholders was announced last October. The only thing new about the announcement is the fact that more Centurion lounges are opening in places like Las Vegas, Dallas/Fort Worth, LaGuardia, San Francisco, and Miami (aren’t those all places American likes to fly?).

Actual Value: 1/200 of $1? The loss of the US Airways & American lounges definitely hurt many of us. This reminder lets us know that it hurt American Express just as much – if not more. While I enjoy the Centurion Lounges, I feel like this “new benefit” update could have been used better. Instead of focusing on just the Centurion lounges, I would have touted all the lounge options available to cardholders. For instance: did you know that Platinum cardholders also get access to Airspace Lounges at JFK, Cleveland, Baltimore, and San Diego? This is in addition to Delta SkyClub access, and PriorityPass membership (whatever that means), mentioned in small print at the bottom of the e-mail.

What do you think? Are these benefits enough to make you want to keep your card? Or is it starting to become overpriced and undervalued? Would these benefits make you want to hold on to your card come renewal season? Let me know your thoughts in the comments below!

Ed. Note: No compensation nor incentive was given to mention or link to any product or service in this article. This content is not provided or commissioned by American Express. Opinions expressed here are author’s alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express.

You Need a Travel Savings Account

June 20, 2014 By Joe Cortez 5 Comments

Last Thanksgiving, Capital One 360 had a great Black Friday special: open a checking account, make 5 debit card transactions within 45 days of opening, and receive a $125 bonus. Not wanting to be one that turns down free money, I gleefully signed up – and, in doing so, opened my first travel savings account.

My main reason for opening up a travel savings account was simple: I got tired of being forced to create a budget around the adventures I want to realize every year. And, over time, I wanted to have the cache (pun intended) to travel as I pleased, without worrying about how I’d pay for it or charging it against a credit card.

So far in 2014, I’ve been able to have guilt-free escapes to London, Dublin, and numerous road trips across the Midwest. Next on the list is Louisville (again), Toronto, and a week in Germany – all funded from my travel savings account. If you haven’t opened up one yet, what’s stopping you?

Ready to get started? Here are my three steps to get started down the road to building up a traveling nest egg today:

Open the travel savings account already!

This may seem like the obvious first step, but you can’t start saving without an account. I recommend finding an account that will allow you to move money from your main accounts (if necessary), and allow you to have easy access to said money. I opted for the Capital One 360 not only for the extra bonus, but because Capital One 360 has no international transaction fees (aside from the conversion rate), and no foreign ATM fees! The only downside is that you must notify Capital One before you travel internationally, but that is as simple as filling out a web form. Be sure to search around – both locally and online – for the best account opening bonuses. For instance: Chase is currently offering up to $400 $500 for opening a new account. (H/T: Doctor of Credit)

Set a travel savings account plan & savings goal

Remember when you were a kid, and worked all summer to save up for that brand new bike? The principals remain the same today: to get to what you want, you need to set a goal, and create a plan to get there. I started by directly depositing $100 out of my paycheck into my travel savings account with every bi-weekly paycheck. In addition, half of all my “ancillary” income (from consulting, freelance work, holiday gifts, etc.) goes straight to the savings. Sure, it means I can’t go out to lunch as often as I like, and can’t do drinks twice a week. But it is so worth it when I spend that extra weekend in California.

Get creative with how you fund your travel savings account

Kenny at Miles4More (another happy member of the Saverocity family) recently outlined how to build up your travel savings account using points and creative (read: manufactured) spending. While this may not be for everyone, it can be a relatively easy way to diversify your savings plan. With a little know how, a good cash-back credit card, and some creativity, it’s a relatively cheap and easy way to start saving for the travel you want to do!

Have you opened up a travel savings account? Are you planning to open one up? Let me know your travel savings account questions experiences in the comments below!