The best decision varies by individual. Even if it seems less than optimal, it can still be the right choice for you.
Depending on your liquidity needs and if you have a six-month emergency fund, think about other investments. Max out your 401k, Roth IRA, or backdoor options. Alternatively, you can throw it into an ETF like VOO. But that’s more of a discussion for r/personalfinance.
I would focus on paying off any debt or putting it into a tax-advantaged retirement account before investing in an HYSA, unless you have an immediate need.
HYSAs at 4% now with likely Fed cuts might mean there are better investment options.
All good points. A slight inconvenience with Alaska miles is they don’t expire, but can be locked for two years of inactivity. It’s easy to re-instate them as I did, but still worth noting.
I personally have no issues with cashing out points at 1cpp.
I find that I don’t earn enough from travel to justify keeping my points for future use, so I would cash them out for $7,000 based on your description.
Do what you believe is best; either way, money often gets wasted.
How long did it take to build up that many points?
Wait, what? You can cash out UR points into a bank account?!
If it makes you happy, it’s likely the right choice. I’m in the same boat and might liquidate 250k for a new iMac. UR points are easy to earn.
I just received my 120k SUB from my Ink Preferred today, bringing me to 215k UR points. Considering using it to pay off a student loan group, but I want to save it for a trip to Japan in fall 2025, especially for Hyatt Kyoto.
A fully maxed-out Roth in one transaction sounds awesome!
I’m not a fan of this. Interest rates are dropping, so an HYSA won’t outpace inflation. ETFs may be a better option.
Your financial situation seems solid if you’re earning hundreds of thousands to gather these points. So $7,000 won’t be a life-changing amount for you. (Assuming you’ve maxed out tax-advantaged accounts.)
Even with economy flights and budget hotels, I can easily get more than 1cpp. You could book trips for loved ones and receive cash in return (if direct transfers are unavailable). But for me, travel offers the best way to spend extra money.
I think there are points brokers that might offer more than $0.01 per point for your Chase points.
Cash them in and invest in 0DTE options.