Samosa Finance

Samosa Finance

My review of Chase Sapphire Reserve credit

After 5 years of using the Chase Sapphire Reserve credit card, it continues to be a top choice for frequent travelers and those who value luxury travel perks. Here’s a review based on its long-term use:

Pros:

  1. Generous Rewards: The Chase Sapphire Reserve offers 3X points per dollar spent on dining and travel, and 1X point per dollar on all other purchases. Over 5 years, the accumulated points can add up to significant travel rewards, including flights, hotels, and more, providing great value for frequent travelers.
  2. Travel Benefits: The card comes with a $300 annual travel credit, which can be used towards travel purchases, such as flights, hotels, and transportation. This credit can help offset the card’s annual fee and provide savings on travel expenses over the years. The Priority Pass Select membership also continues to provide access to over 1,300 airport lounges worldwide, enhancing the travel experience.
  3. Luxury Hotel & Resort Collection: Although I hav personally not used this benefit , The Luxury Hotel & Resort Collection, available to Chase Sapphire Reserve cardholders, offers benefits such as room upgrades, late check-out, and additional perks at over 1,000 luxury hotels and resorts around the world.
  4. Insurance Coverage: The Chase Sapphire Reserve includes several insurance coverages, such as trip cancellation/interruption insurance, primary rental car insurance, travel accident insurance, and more. These coverages can provide peace of mind and savings on travel-related expenses over the years, especially for frequent travelers.
  5. Flexibility with Transfer Partners: The ability to transfer points to various travel partners at a 1:1 ratio continues to be a valuable feature. This includes airline and hotel partners . My personal favorite is hyatt which offers great value.

Cons:

  1. Annual Fee: The Chase Sapphire Reserve has a higher annual fee compared to many other credit cards. While the travel credits and benefits can offset the fee for frequent travelers, it’s still important to consider the annual fee and whether the card’s benefits justify the cost, especially after 5 years of usage.
  2. Qualification Requirements: The Chase Sapphire Reserve has relatively high qualification requirements, including a good credit score and a higher minimum credit limit. The cardholder may have needed to maintain a good credit score and meet the qualification requirements over the years to continue using the card.

Overall, the Chase Sapphire Reserve can be a valuable card for frequent travelers who can take advantage of its rewards and benefits to enhance their travel experiences over the years. So, if you travel frequently and enjoy luxury perks, the Chase Sapphire Reserve can be a worthwhile option to consider. However, it’s important to carefully assess your own travel habits, spending patterns, and preferences to determine if the card is the right fit for you .As with any credit card, it’s always a good practice to review and compare multiple options, and consider your own financial situation and needs before making a decision. Happy travels!

Riding out the Storm

2022 has been a tough investing year for us. As someone who personally experienced the frustration and stress of losing money in-spite of doing the seemingly correct things like “Staying the Course” , the last year has tested our family’s Conviction. When the value of an investor’s portfolio declines, it can be tempting to second-guess their investment decisions and consider making changes to their portfolio or strategy. With the start of this new year we have decided to focus on the positives:

1. Higher returns on savings: We took advantage of the treasury rates going higher and moved our money from a big bank’s savings account and bought treasury notes. Being in California gives us an added advantage of not having to pay state taxes on the interest. This has been an easy win. We also moved our emergency fund to an online savings account offering more than 3% interest rate. Higher returns on savings can also lead to compound interest.

2. Stronger currency: We visited India and Dubai for my brother’s marriage in December. We have been planning  this four week trip for a long time and it was a major expense for us. With the US dollar now stronger relative to other currencies, we were able to get more for our money when traveling abroad. This has been a favorable headwind for us. We could afford a few more experiences in Dubai such as a luxury Desert Safari, visiting the tallest building in the world, Visiting the largest water park in the world. All this made the trip even more memorable. 

3. Bigger car: Buying a car in cash in a high interest rate environment can be a good way to save money on financing costs and potentially get a better price on the car. Our 2014 Altima now feels small and lacks many security features like a backup camera. With multiple online used car retailers near bankruptcy due to decreased demand caused by high interest rates. We are keeping an eye for a pre-owned SUV which we can buy all cash. We are hoping to get lucky with a nice car deal this year.

4. Stocks and bonds are cheaper: If you spread your wealth and have a diversified portfolio, 2022 was a painful correction but it could have been a lot worse. We are grateful to have not invested in some of the high flyers of the previous years and stuck to our index funds. With their unit values down, we end up getting more units in our weekly purchases. In personal finance, everything is relative. We feel our passive investment style has helped us lose less money than others relatively. We see this as a small win.

I hope 2023 turns out to be better,until then, Let’s try and look for the positives.