Author Topic: Cashing out Amex points (Read 3759 times)

mlight · « **on:** June 28, 2021, 07:33:19 AM »

Which schwab account do I open for the ability to cash out amex points with no tax implications?

S209 · « **Reply #1 on:** June 28, 2021, 08:44:37 AM »

Quote from: mlight on June 28, 2021, 07:33:19 AM

Which schwab account do I open for the ability to cash out amex points with no tax implications?

Heads up if you’re looking to cash out, it looks like the 1.25 cpp option is ending September 1st so hurry.

mlight · « **Reply #2 on:** June 28, 2021, 10:00:08 AM »

Quote from: S209 on June 28, 2021, 08:44:37 AM

Heads up if you’re looking to cash out, it looks like the 1.25 cpp option is ending September 1st so hurry.

Yup, that's why I wanna cash out before the devaluation

bamo · « **Reply #3 on:** June 28, 2021, 10:58:14 AM »

Quote from: S209 on June 28, 2021, 08:44:37 AM

Heads up if you’re looking to cash out, it looks like the 1.25 cpp option is ending September 1st so hurry.
[/quote

Can you explain what this is exactly ending? ]

Dan · « **Reply #4 on:** June 28, 2021, 11:00:20 AM »

Quote from: bamo on June 28, 2021, 10:58:14 AM

Can you explain what this is exactly ending?

It's going from 1.25 to 1.1

Euclid · « **Reply #5 on:** June 28, 2021, 11:02:30 AM »

Quote from: Dan on June 28, 2021, 11:00:20 AM

It's going from 1.25 to 1.1

Would you call this a devaluation of MR?

farmbochur · « **Reply #6 on:** June 28, 2021, 11:34:49 AM »

Quote from: Euclid on June 28, 2021, 11:02:30 AM

Would you call this a devaluation of MR?

Not if you can readily redeem for travel or sell at 1.25+

Joel · « **Reply #7 on:** June 28, 2021, 11:36:17 AM »

Quote from: farmbochur on June 28, 2021, 11:34:49 AM

Not if you can readily redeem for travel or sell at 1.25+

Or via amex Biz Platinum

jackofall · « **Reply #8 on:** June 28, 2021, 11:45:00 AM »

Dumb question, you need the Schwab Plat or the investor card gets the same rate/options?

etech0 · « **Reply #9 on:** June 28, 2021, 06:39:12 PM »

How are you transferring these points?

TBD · « **Reply #10 on:** July 04, 2021, 11:59:49 PM »

https://www.doctorofcredit.com/rumor-american-express-charles-schwab-cashout-option-reduced-to-1-10%c2%a2-on-september-1-2021/

Freecountry · « **Reply #11 on:** July 05, 2021, 08:01:22 AM »

Quote from: Euclid on June 28, 2021, 11:02:30 AM

Would you call this a devaluation of MR?

how’s it not?

Geshmak25 · « **Reply #12 on:** July 05, 2021, 10:49:32 AM »

Quote from: farmbochur on June 28, 2021, 11:34:49 AM

Not if you can readily redeem for travel or sell at 1.25+

Black market rates are pretty low these days...

yuneeq · « **Reply #13 on:** July 05, 2021, 11:11:12 AM »

Quote from: farmbochur on June 28, 2021, 11:34:49 AM

Not if you can readily redeem for travel or sell at 1.25+

Losing an on-demand redemption that’s within TOS at 1.25 is most definitely a devaluation

S209 · « **Reply #14 on:** July 05, 2021, 11:42:34 AM »

Quote from: yuneeq on July 05, 2021, 11:11:12 AM

Losing an on-demand redemption that’s within TOS at 1.25 is most definitely a devaluation

+1000

No matter what, the absolute rock bottom MR are currently worth is 1.25 since you can easily and with no questions asked or FR triggers cash them out. That removes lots of risk of earning/purchasing points. When that goes away the security leaves (not to mention opens the door for Amex to play games with their currency since you don’t have better cashout options). As long as you get 1.5 for Biz Plat it’s still not the end of the world but Amex is on a roll here..

etech0 · « **Reply #15 on:** July 05, 2021, 11:45:23 AM »

Quote from: mlight on June 28, 2021, 07:33:19 AM

Which schwab account do I open for the ability to cash out amex points with no tax implications?

Can anyone answer this? TIA

S209 · « **Reply #16 on:** July 05, 2021, 11:58:15 AM »

Quote from: mlight on June 28, 2021, 07:33:19 AM

Which schwab account do I open for the ability to cash out amex points with no tax implications?

Quote from: etech0 on July 05, 2021, 11:45:23 AM

Can anyone answer this? TIA

Personally I have a High Yield Investor Checking and two Individual Brokerage accounts. What do you mean by no tax implications? You deposit the points directly into your brokerage account and can transfer them out. AFAIK they are not considered taxable income. I have never received any forms from Schwab or Amex and have cashed out several thousand in a single year (chatasi avisi pashati).

ETA: Check out this DoC post
https://www.doctorofcredit.com/opening-schwab-brokerage-checking-amex-platinum-credit-card/

yuneeq · « **Reply #17 on:** July 05, 2021, 02:16:19 PM »

Quote from: S209 on July 05, 2021, 11:42:34 AM

+1000

No matter what, the absolute rock bottom MR are currently worth is 1.25 since you can easily and with no questions asked or FR triggers cash them out. That removes lots of risk of earning/purchasing points. When that goes away the security leaves (not to mention opens the door for Amex to play games with their currency since you don’t have better cashout options). As long as you get 1.5 for Biz Plat it’s still not the end of the world but Amex is on a roll here..

What do you mean by 1.5 for Biz Plat - 1.5 for spending 5k+ in a single transaction?

Dan · « **Reply #18 on:** July 05, 2021, 02:19:12 PM »

Quote from: yuneeq on July 05, 2021, 02:16:19 PM

What do you mean by 1.5 for Biz Plat - 1.5 for spending 5k+ in a single transaction?

When redeeming for airfare your points are worth at least 1.54 cents each, or more for insider fares.

Joel · « **Reply #19 on:** July 05, 2021, 02:26:45 PM »

Quote from: Dan on July 05, 2021, 02:19:12 PM

When redeeming for airfare your points are worth at least 1.54 cents each, or more for insider fares.

Quote

If you redeem for a premium cabin ticket on any airline or in coach on the airline of your choice, you’ll get a 35% points rebate, which will mean you’ll get a value of at least 1.54 cents per point. The value can be even higher if AMEX has a discounted insider fare available on your route.

Its till limited.. and having the cash out option is devaluing MR