Cash Beats Miles

Sheel Mohnot shares his perspective on credit card rewards, particularly focusing on why he prefers cash back over airline miles, and his approach to maximizing financial benefits through various programs.

• Cash Back vs Miles Preference:

  • Prefers straightforward cash back over airline miles
  • Already has more miles than needed
  • Skeptical of mile value calculations (like 2.3¢ per mile) due to:
    • Inconvenient flight times
    • Limited flight options
    • Miles inflation over time
    • Never using 100% of accumulated points

• Credit Card Optimization:

  • Uses Robinhood card offering:
    • 3% base cashback on everything
    • Up to 5% with $25,000 deposit promo
  • Values tax payment benefits:
    • Gets 2% back on tax payments
    • Considers it "free money"

• Robinhood Asset Transfer Strategy:

  • Takes advantage of 1% asset transfer match
  • Example: $10M in assets = $100K bonus
  • 2-year holding requirement
  • Additional benefits:
    • 5% margin rate
    • Better overall service experience

• Negotiation Tactics:

  • Leverages competing offers
    • Schwab offered $15K to keep assets
    • Still chose Robinhood for better overall value
  • Emphasizes importance of asking for better deals
  • Recommends trying multiple times with different agents if needed