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A Powerful Circuit to generate Cash Flow

A Complete Solution using American Express

We have mentioned cash flow many times but only cover the method of credit cards. I believe that using a credit card to spend and generate cashback is the easiest way to begin and almost no risk if you don’t overspend. However, it may not be enough. People all know that the stock market is a place to earn profits fast, but with high risk. So, the question is, is there a better way for newbies to start investing?

How about using your cashback to invest? You are not losing any of your “Own” money, but you may generate a higher cash flow?

Sounds too good to be true? Let me explain it to you.

American Express, it has a special platinum card with Charles Schwab. Having this card, you can transfer your American Express points(which is called Membership Reward) to your Schwab brokerage account at a ratio of 1 points=1.1 cent.

Schwab Platinum Credit Card

Not only the 10% transfer bonus, but another good thing is also, if you have multiple American Express cards with points, you can combine all these points and transfer them into your brokerage account.

Let’s do a simple calculation.

This Schwab Platinum card currently offers 100,000 points, which equals $1100 if you want to invest!

Meanwhile, American Express, also have many cards with points offer:

  • Regular Platinum card with 125000~150000 Points(YMMV)
  • Gold card with 75000 points
  • Green card with 45000 points
  • Everyday card with 10000 points
  • Everyday preferred card with 15000 points

So if you can get all these cards in 12-18 months, you will earn almost 400,000 points, which means $4400 in the stock market!

At the current situation, the stock market is tumbling every day, is it a good time point for investing? Not at all! However, if you just buy a high dividend ETF, such as QYLD, you will get around a 15% annual dividend with lower risk.

$4400 in the market, will generate around $600 cash flow per year. If you get more points, you will get more.

For example, an American Express gold card will give you 4 points per dollar for grocery spending. So, for every $1, you will get 4.4 cents in the stock market, and generate a 0.4 cents dividend per year. Totally, every dollar you spend in the grocery store will give you 4.8 cents at the end of the year. Very Solid cash flow, easy start with low risk!

I know this is a very simple introduction, if you have any questions, please comment. I will explain in detail later!

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