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  • Kitces on Credit Card Rewards

    Has anybody posted this on the forum yet? Kitces has given you all permission (well, your financial planners) to spend time chasing CC rewards as a value-added service. For those who swing that way, pls lmk if the article teaches you anything new that is worth your time. Would you pay a financial advisor to do this? (Just curious - won’t be on our menu.)
    Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

  • #2
    Originally posted by jfoxcpacfp View Post
    Has anybody posted this on the forum yet? Kitces has given you all permission (well, your financial planners) to spend time chasing CC rewards as a value-added service. For those who swing that way, pls lmk if the article teaches you anything new that is worth your time. Would you pay a financial advisor to do this? (Just curious - won’t be on our menu.)
    Kitces has some 'out there' ideas. I follow him on twitter and it seems like a lot of things like this are more click-bait. If you can sift through the junk however he occasionally has some wonderful ideas.

    I actually think Jeff Levine "The Buckinghammer" - affiliated with Kitces is a much better follow on twitter.

    Comment


    • #3
      Originally posted by runfast00 View Post

      Kitces has some 'out there' ideas. I follow him on twitter and it seems like a lot of things like this are more click-bait. If you can sift through the junk however he occasionally has some wonderful ideas.

      I actually think Jeff Levine "The Buckinghammer" - affiliated with Kitces is a much better follow on twitter.
      I think some of the articles are just to fill space to keep posting a lot of content - let’s face it, like other bloggers we know. Coming up with new material in order to keep building readership is difficult, but I think Jim usually does a better job of it. But when Kitces is good, he is very very good. There are a few posts I reference repeatedly.

      And, truth be told, the majority of Kitces’ readers are planners and not doctors, many of whom are hungry for new ideas to differentiate themselves from the boring people (like me) spouting the same old boring realities of life and finance. I’ll try to check out Levine as soon as I have some free time 🤣.
      Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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      • #4
        Count me out of chasing credit card points. I know some, like POF, work the cards for advantage. But I honestly don’t find the juice worth the squeeze. Perhaps I could do better but I am happy enough with simple cash back cards.

        Comment


        • #5
          Originally posted by Larry Ragman View Post
          Count me out of chasing credit card points. I know some, like POF, work the cards for advantage. But I honestly don’t find the juice worth the squeeze. Perhaps I could do better but I am happy enough with simple cash back cards.
          I generally agree. But I do believe that there is a potential value-add, as an advisor, to learn the shopping and spending habits of their clients, and perhaps make some credit card suggestions. I posted a tongue-in-cheek thread about this a while back, but I have simplified it for my wife:
          1. When you are at Target, pull out the Target card (5% discount at the register).
          2. When you are at Whole Foods, pull out the Amazon card. 10% off sale items, and 5% back as credit at Amazon.
          3. Everywhere else, for you, it is the green Fidelity card (2% rebate everything as deposit to Fidelity account).

          We are not going to get rich off of these minor adjustments, but the effort is minimal, and the benefit accumulates over time.

          Comment


          • #6
            Originally posted by VagabondMD View Post

            I generally agree. But I do believe that there is a potential value-add, as an advisor, to learn the shopping and spending habits of their clients, and perhaps make some credit card suggestions. I posted a tongue-in-cheek thread about this a while back, but I have simplified it for my wife:
            1. When you are at Target, pull out the Target card (5% discount at the register).
            2. When you are at Whole Foods, pull out the Amazon card. 10% off sale items, and 5% back as credit at Amazon.
            3. Everywhere else, for you, it is the green Fidelity card (2% rebate everything as deposit to Fidelity account).

            We are not going to get rich off of these minor adjustments, but the effort is minimal, and the benefit accumulates over time.
            Yep. We’ve also got the Costco card for Costco and gas station purchases.

            I carry a couple of premium cards, but I typically pay for meals/travel/groceries and take advantage of those perks.

            My wife prefers that I keep the card use fairly straightforward for her.

            Comment


            • #7
              Bloggers definitely benefit - Referral links are VERY lucrative.

              For users; the sweet spot remain in the credit card churn.

              otherwise, KIS like Vagabond said:
              Affinity cards in the wallet
              -Target and Amazon.
              -Cash reward card

              Bonus related cards in the drawer on automation;
              online and automated recharges (utility bills)

              Comment


              • #8
                Originally posted by jfoxcpacfp View Post
                Has anybody posted this on the forum yet? Kitces has given you all permission (well, your financial planners) to spend time chasing CC rewards as a value-added service. For those who swing that way, pls lmk if the article teaches you anything new that is worth your time. Would you pay a financial advisor to do this? (Just curious - won’t be on our menu.)
                I wasn’t familiar with Kitces. Thank you for sharing. I thought it was a comprehensive and researched article. Hopefully their other content is too.

                I don’t know that I’d be interested in an advisor providing that sort of service on our behalf. I’d imagine that it fits a need for some people. I don’t know if there’s enough of a margin/return where the time and effort can be beneficial for all parties.

                I’ll play the game on my own for my family’s benefit. I probably miss out on some benefits but I think of it all as free house money since we pay our cards in full.

                Comment


                • #9


                  I wouldn’t pay a financial advisor for doing this
                  I had cash back CC all along , in the last 2 years , we got 3 CC with bonus points , just booked 4 Airline tickets and Hyatt category 6 hotel for 5 nights ( I hope it doesn’t get cancelled due to COVID numbers ) with points , going back to cash back cards again .

                  Comment


                  • #10
                    Originally posted by Larry Ragman View Post
                    Count me out of chasing credit card points. I know some, like POF, work the cards for advantage. But I honestly don’t find the juice worth the squeeze. Perhaps I could do better but I am happy enough with simple cash back cards.
                    Depends on how hard you squeeze.

                    Taking a trip to Hawaii in a couple weeks with the wife, and getting >$20k worth of "freebies" that I would not be willing to pay cash rates for.

                    Another similar situation for Lake Como in the fall.

                    If you squeeze hard enough, the juice can be pretty sweet.

                    But I do agree that it can be a tad onerous from time to time.

                    Comment


                    • #11
                      But to answer Johanna, if a financial advisor ever pitched something like this to me I'd have every last dime of my money out of their hands by close of business.

                      Comment


                      • #12
                        Originally posted by VagabondMD View Post

                        I generally agree. But I do believe that there is a potential value-add, as an advisor, to learn the shopping and spending habits of their clients, and perhaps make some credit card suggestions. I posted a tongue-in-cheek thread about this a while back, but I have simplified it for my wife:
                        1. When you are at Target, pull out the Target card (5% discount at the register).
                        2. When you are at Whole Foods, pull out the Amazon card. 10% off sale items, and 5% back as credit at Amazon.
                        3. Everywhere else, for you, it is the green Fidelity card (2% rebate everything as deposit to Fidelity account).

                        We are not going to get rich off of these minor adjustments, but the effort is minimal, and the benefit accumulates over time.
                        We definitely play the points game around my house, but the best I can get my wife to do is "use the pink AmEx for everything."

                        Comment


                        • #13
                          Originally posted by jbmitt View Post
                          .
                          My wife prefers that I keep the card use fairly straightforward for her.
                          My wife’s definition of fairly straightforward is rather simple: Which card do you want me to use?
                          The only time this is relevant is when a change is required.
                          a. Card expiration
                          b. Never ever try to take HER Sam’s Club or Macy’s card. Those are her’s.
                          She won’t even speak to an FA. No offense Johanna. She would have a nice visit with you, just not about numbers.

                          Comment


                          • #14
                            Originally posted by Tim View Post
                            My wife’s definition of fairly straightforward is rather simple: Which card do you want me to use?
                            The only time this is relevant is when a change is required.
                            a. Card expiration
                            b. Never ever try to take HER Sam’s Club or Macy’s card. Those are her’s.
                            She won’t even speak to an FA. No offense Johanna. She would have a nice visit with you, just not about numbers.
                            😂 some days, i don’t want to speak to me, either.
                            Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

                            Comment


                            • #15
                              Originally posted by jfoxcpacfp View Post

                              😂 some days, i don’t want to speak to me, either.
                              I would tell her she has to ask you about Mayfield. It’s only been a month. Gone from the news cycle.
                              https://www.washingtonpost.com/opini...ters-are-gone/
                              Yeah, the goal would be to give you an outlet. Mayfield update please. If you feel like it. Yeah, she would stay as long as you wanted.

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