The Amex Trifecta is a popular travel credit card option, and with the Ame Schwab Platinum card, it offers a better cash back option. But while there is the Amex Schwab cash out benefit, it might not be the best cash back credit cards for you.
0:00 – Start
0:34 – Schwab Platinum Cash Out Benefit
1:35 – Amex Trifectas
2:26 – Issue with Schwab Trifecta
3:46 – Schwab Trifecta Effective Annual Fee
4:00 – Average Person Spending
4:13 – Amex Schwab Trifecta Value
4:58 – Cash back Rotation
5:50 – Higher Net Worth Rotation
7:23 – Exceptions
8:06 – Final Thoughts
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43 comments
Are you implying that my metal credit card has the same metal properties as Thor's hammer? I'm going to swing my card and see if I take off
Hey Waller! I know you have a video on 10 ways to redeem MR points, but can you make an updated one with more details? I’m new in the game and not really sure what to do with those points. Thanks!
I fainted a little after your first statement…
For me, it's all about the SUBs. I just completed the Schwab Platinum, got my 60K, about to finish my business gold with 50K and then I'll work on my EDP and get the 30K SUB! I had 450K points sitting before this, so I cashed those out and tripled my money in 3 weeks. Will I continue with this when my current balance lowers? Probably not, but it's been a money maker for me so far. Great vid!!
Of course it makes sense for me because I like to travel. However if I didn't like to travel, it wouldn't make sense. Who gets a travel card if they don't travel?
Travel cards for those that rountinely travel. Cash back cards for those that don't travel or covers a category that travel cards don't.
Thor's hammer 😄😄😄
I switched from the Fidelity 2% (opened back in 2006) to the Amex BBP/Gold duo with the plan to redeem for transfer partner business class flights. One factor in the decision was that the Schwab Platinum is available for sign-up-and-cash-out if plans change. I hope it remains available. I agree with you that there are better cash back setups unless you value the Platinum perks enough to justify its fee.
I’m liking the B of A set up!
I'm running a Pentafecta (Schwab, Gold, Bus Gold, BBP, BBP), 50% for cash back, 50% for travel (1.33 – 1.8 cpp). I honestly would run this as a 100% cash back, considering the additional value in hotel status, lounge access, etc. A niche benefit for sure, but we'll be earning anywhere from $200 – $600 per year in cruising credits, bringing that affective annual fee down close to zero. Of course running e-commerce makes that Bus Gold skyrocket in value.
Great! This setup should not be for just cash back!
Thank you for doing this video. I had a guy on reddit who kept trying to convince me to go the amex trifecta because it was "sooo good" for cash back at the 1.25cpp rate and I kept disagreeing with him.
You’re gonna hurt a lot of feelings with this video. Lol
To keep it real, AMEX simply isn’t a good company for cashback cards period.
Amex cashback trifecta doesn’t make sense for anyone. It’s literally an oxymoron.
You have to spend money on travel in order to justify getting the platinum (travel benefits are a huge part of having the card). And if you are spending money on travel, you’d get more value from using your points on the travel that you’re ALREADY doing anyway.
Personally one value that is very hard to calculate but has saved me ~$2k with 5 use cases (with CSR/CSP) over the last ~3 years is travel protections. While Amex's travel protections with trip delay are slightly more restrictive (round trip requirement), I would consider some sort of Cash back setup with the Schwab Platinum only for that benefit. I know this is a very niche use case but I travel a ton for work and the trip delay insurance to me is such a key benefit in whatever my airline card is.
IT is a very good setup but not all is lost with it if u r already in the market for a premium travel card u might as well get the scwab and make a cash back setup since u do get a bonus on ur points anyways i don't agreed with making the gold card apart of it and paying 250 just for 4x back on groceries but a schwab and bbp setup for 6.25x on travel and 2.5x on everything else would still be a reasonable alternative if u like cash back and are looking for a premium travel card plus the $100 saks credit is pretty universal u can just buy something at saks and return it and use the 50 u got at nike or anywhere u want
Those Amex annual fees are killer.
I am Shocked! That so many people are doing such a horrible set up. Stupid.
■My Full list of Optimized Cashback Cards:
●5 Carry Cards:
• Fidelity Rewards – 2% Everything
• PNC Cash Rewards – 4% Gas
• US Bank GO – 4% Dining, 2% Streaming ($15 SC after year of streaming paid w/ card)
• Amex Blue Cash Everyday – 3% Groceries
• Marvel Mastercard – 3% Entertainment
●3 Rotating cards to rotate into wallet when they overtake a carry card:
• Discover It – 5% Rotating
• Chase Freedom – 5% Rotating
• Nusenda Platinum – 5% Rotating
●4 Drawer cards for Online/Auto stuff that doesn't normally require me to carry the card:
• Wells Fargo Propel – 3% Travel, Transit. Free Phone Insurance
• Amazon Prime Store – 5% Amazon (Requires Amazon Prime $119 AF)
• BoA Cash Rewards – 3% Online Shopping
• US Bank Cash+ – 5% on 2 of these options: TV/Internet/Streaming, Home Utilities, Phone, Fast Food, Sporting Goods Stores, Clothing Stores, Gym/Fitness Center, Department Stores, Furniture Stores, Electronics Stores, and/or Movie Theaters.
Make a video of the best cashback setups with 4 or less cards
Schwab trifecta is the best even though you don’t think so🧐, you’re MY BOY Blue!!!!
I actually think the MS Platinum is better for tbe AU
AMEX Gold / Platinum are premium cards, they're not meant for an 'average' user. You get the value by having lots of spend in airfare and dining categories, or by 'creative' use of grocery category on the Gold card.
Subscribed!! Thanks for the info!
Excellent video WW. I agree. I think it was easier to justify these high AF cards when people were doing alot of travel. Now that travel is limited, it just doesnt make sense to use or keep them for cashback. They can keep em for flex value, but the proof is in the pudding.
I tend to agree with you. Though, I use the AMEX Schwab card set-up because I am in the military, travel often, and value the lounge access.
Most of this makes sense. However you are giving a value of $0 for all the benefits/status they come with Plat. Hotel status, airport lounge access, etc. right now, ya that stuff is prob not worth much. But to a lot of people, even those that travel only a few times a year, that stuff holds more than a few hundred dollars of value for them. I am not one of those people.
Great video Dustin. Definitely an eye opener to those that run this setup. I wouldn't run this setup for cash back personally and I think the Platinum card is better for people who fly often. Take care and stay safe!
My daily spend combo is cash back oriented. My 1 ultra premium card is the AMEX CS CC. I combine that with my daily spend on the BPP CC. Combine this with my Paypal 2% cashback with no annual fee or foreign transaction fee as my absolute baseline card. I then also use my Citi Costco Business card for Gas 4% cash back, Global Restaurants 3%, 2% Costco purchases. This is my everyday card rotation and it works well for me and might for others who do the math as well. Because I do most of my grocery shopping at Costco, I realize that I wouldn't get that much value by getting the Amex Gold CC.
I agree with your hypothesis given the annual fees, however, if one needs an Amex Platinum card, the Schwab is best one still, but get this combination instead: no AF Everyday card, no AF Blue biz card, those points can be convert into cash back.
To really make this accurate you need to account for the expected return from the cash that is placed into an eligible Charles Schwab brokerage account. It's not apples to apples comparing cash being placed into an investment vehicle and cash that is just being redeemed for something like a statement credit. In addition to the other status perks with the Amex Platinum you also typically have a cardholder who is playing the long game with their cash – so the cash stays in that brokerage account for a longer time, gains interest, and compounds over time. A real comparison should factor that into the calculations.
I never understand the hype around the Schwab thing. Yes, it's an option to cash out, and 1.25 cents is decent, but these cards are just simply not best for cash back. Because of the huge annual fee, You still will do better with cash back cards if that's what you want.
I have the business blue Plus and the gold card. Don't need to get the Schwab Platinum until I'm ready to cash out if that's what I decide to do. The points are good forever so you don't always have to have the Schwab card.
Good video. And I like the simplicity of the cash back philosophy. If cash is all you value, then I agree with your conclusion. However, if you travel frequently and find benefit in being able to enjoy your pre-travel experience in a lounge with free food (which saves money) or you appreciate having many expenses reimbursed if your luggage is lost or trip delayed or cancelled, etc etc then your personal value equation is more complex than: value=cash. It’s highly variable stuff!
I’ve got this set up, and yes, it is pricey. The thing is, because of my spend, I’m making a nice profit on it. I take advantage of all of the Covid credits on the CS plat, and most of the other credits too. And my none cat spend has got me about 18k on points, which is enough to almost pay the gold.
The kicker is that with Covid, I’ve got extended family with me. Our grocery bills are huge, and we go out a lot on weekends. So, we’re talking about 90k between the two, thus far.
The airline credit is pretty useless, but the hotel status can save me from $100-$150 when I do take a trip. It all adds up.
awesome content 👍
awesome content 👍
The schwab trifecta is best for active duty personnel. Reason is because we don't get charged annual fees under SCRA and still get the AMEX benefits plus them sweet points.
Don’t agree get gold get green more get this get the regular on an increased sign up bonus
So I should use a cash back trifecta and put the earnings into my Schwab brokerage account…. AWESOME!
When you arbitrarily cut the value of the AmEx benefits in half and leave some benefits out completely, of course other cards are better. I don't understand this take at all. If you used 80% instead of 50%, AmEx comes out on top even without adding the other benefits.
After initially being quite impressed by your analysis I realised that there was a MAJOR flaw in your calculation: your assumption that a person/household running an American express schwab platinum-gold-BBP trifecta makes (and spends) the same amount as an average American household. According to 5-year old data, an average Amex platinum holding household made $741,170 a year. Naturally, their spending will be higher, by an order of magnitudes, than the $25k or $40k that you assumed. That makes the schwab-gold-BBP trifecta the best cashback system for them on the market thanks to their extremely high spend limits on categories that earn 4x and 5x reward points as well as the 1 point = 1.25 cents conversion rate. An overwhelming majority of people who are in the financial position to get an Amex platinum will easily get 5x or more cashback on all their purchases running this set-up after accounting for the $800 annual fee. In a nutshell, the kind of households that spend $25k or $40k a year are generally not on Amex's list of potential clients for any of their charge cards, let alone multiple charge cards including the platinum and gold. I did the math and the Schwab-Gold-BBP is indeed the BEST cashback setup for any high-earner and makes the best sense for people looking for cashback who can actually afford to run an Amex setup.
Question. I have just over 200k MR points. Is the Schwab card the only option to get a decent cash return on those points? I don’t have any cash back cards presently
Welp I'm military tho and I like feeling like Thor with my cards so I guess I'm still fine but I do agree, AMEX doesn't really offer the best cashback system.
If you have a six figure or near six figure spend annually that’s the best rewards trifecta hands down. If your spending 25k in a year, there are better credit card set ups that will reward you way better. Start with that Amex Blue Cash Preferred. 😉