After pondering whether to cash out my Chase Ultimate Rewards Points for investment funds, I finally pulled the trigger last week. With travel at a standstill, I figured my 200k points($2,000) would be better of invested in the stock market. With over a million American Express Rewards Points saved up, Chase points were a bit expendable. It took just over 2 days for the points to be converted into cash and deposited into my account.
What did I Invest in?
Using the $2,000 I added to my current portfolio of long term holdings, I decided to purchase high dividend stocks. I decide to purchase some more AT&T, BP, Verizon, and Coca-Cola shares. All 4 of these companies pay a nice dividend with AT&T leading the pack with an annual yield of just above 7%.
Why did I choose Dividend Stocks?
Rather than invest in the booming tech industry, I decide to go with low volatility dividend stocks that had lost significant value during the first market crash. The tech sector has been extremely volatile as of late, leading me to pick undervalued dividend income stocks that are less volatile. Compound interest is an important factor in growing wealth and fighting inflation. With many companies up for grabs at a discount, I couldn’t resist adding to my current portfolio.
Should you Cash out your Points?
Getting a $.01 value per point might not be the greatest use of the extremely valuable Chase points, yet with a nice stash of United Miles and almost one million American Express points, this was an easy call. I still plan to travel internationally next year, but since I plan to fly to Asia, I could use Amex and their ANA partnership. As for hotels, I currently have several Hilton free night certificates available with Summer 2021 expiration dates which were earned via the Hilton Amex Business Card. I also have a nice stash of Hyatt Points and a couple of free night certificates. With that in place, I didn’t feel the need to hoard more points, but everyone’s story will be different.
Bottom Line
Points are valuable for traveling. They can help you fly in premium cabins, score nights at luxury hotels, and save money on last minute trips, yet with the global pandemic, travel has taken a huge step back. While this makes flexible currencies even more valuable, it was no longer justifiable to hold onto 200k Chase points when I could use them to invest in the stock market long term. This might not be ideal for everyone, but if you do choose to cash out your points make sure you invest wisely and avoid chasing with FOMO (Fear of missing out).
Disclaimer
I am not a financial adviser. All statements made are merely my opinions and if you chose to invest please do so responsibly
