Top 5 Retirement Savings Tips from John Oliver

John Oliver again tackled personal finance on his HBO show Last Week Tonight, this time exploring retirement savings. (He previously covered credit reports.) Here is the full video link, embedded below:

It is truly hard to present this stuff in an entertaining manner, so I was interested to see how they would approach things and who’d they pick on. It’s not bad considering it runs 20 minutes – quite long for an internet video. If you skip to roughly the 17:55 mark, you’ll get the best bits – a satirical reply to widely-promoted Prudential commercials (one, two) and his top 5 retirement savings tips:

  1. Start saving now.
  2. Invest in low-cost index funds.
  3. Ask if your adviser is a fiduciary.
  4. As you get older, gradually switch some of your stocks into bonds.
  5. Keep your fees under 1%.

Nothing new to most financially-savvy folks, but hopefully it helps steer some people in the right direction.

BankAmericard Cash Rewards™ Credit Card Review: $100 Bonus, Preferred Rewards Bonus

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Updated. As of June 1st, 2016, the 2% cash back includes both grocery stores and wholesale clubs (up to 3.5% with Platinum Honors Preferred Rewards), with the spending cap raised to $2,500 in combined gas, grocery, and wholesale club purchases per quarter. This is a permanent (non-rotating) category addition that includes Costco, Sam’s Club, and BJs wholesale clubs.

The BankAmericard Cash Rewards™ Credit Card is the mainstream “cash back rewards” credit card branded by Bank of America. In this review, I’ll cover the basic card features but also focus on a lesser-known opportunity – if you’re a Preferred Rewards client, you can increase that bonus to 25% – 75%. For such “relationship” customers, the bonus can change this card from good to great. Read on for details.

Here are the highlights of this card:

  • No annual fee.
  • $100 online cash rewards bonus after you spend at least $500 on purchases in the first 90 days of account opening.
  • Earn 1% cash back on every purchase, 2% at grocery stores and now at wholesale clubs, and 3% on gas up to the first $2,500 in combined grocery/wholesale club/gas purchases each quarter.
  • No changing categories and no expiration on rewards
  • 0% Introductory APR for 12 billing cycles for purchases AND for any balance transfers made in the first 60 days, then, 13.24% – 23.24% Variable APR. 3% fee (min $10) applies to balance transfers.
  • Get a 10% customer bonus every time you redeem your cash back into a Bank of America® checking or savings account
  • If you’re a Preferred Rewards client, you can increase that bonus to 25%-75%. Click “Apply Now” to learn more about Preferred Rewards.

The Preferred Rewards program is designed to rewards clients with multiple account and higher assets located at Bank of America banking, Merrill Edge® online brokerage, and Merrill Lynch® investment accounts. Here is a partial table taken from their comparison chart (click to enlarge):

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Let’s consider the options. Bank of America’s interest rates on cash accounts tend to be lower than highest-available outside banks, so moving cash over to qualify may reduce your interest earnings. Merrill Lynch advisory accounts also usually come with management fees. However, if you have brokerage assets like mutual funds and ETFs, moving them over to Merrill Edge may actually reduce your costs because at the Platinum and Platinum Plus levels they will actually give you 30 to 100 free online stock trades every month.

I recently moved a little over $100k of brokerage assets (Vanguard funds) over to Merrill Edge to qualify for Platinum Honors. I realize not everyone will have this level of assets to move around, but if you do then it is worth considering. Also, I later realized that it will take a while for my “3-month average combined balance” to actually reach the $100k level and officially qualify for Platinum Honors. After that the 25% – 75% rewards bonus on credit card rewards kick in.

Cash Back Rewards Tiers for Preferred Rewards

Recall that the basic structure is “1/2/3”; you get 1% cash back on every purchase, 2% at grocery stores and wholesale clubs and 3% on gas for the first $2,500 in combined grocery/wholesale club/gas purchases each quarter (1/2/3). Here’s how the bonuses work out:

  • Platinum Honors 1.75/3.5/5.25: 1.75% cash back on every purchase, 3.5% at grocery stores and wholesale clubs, and 5.25% on gas for the first $2,500 in combined grocery/wholesale club/gas purchases each quarter.
  • Platinum 1.5/3/4.5: 1.5% cash back on every purchase, 3% at grocery stores and wholesale clubs, and 4.5% on gas for the first $2,500 in combined grocery/wholesale club/gas purchases each quarter.
  • Gold 1.25/2.5/3.75: 1.25% cash back on every purchase, 2.5% at grocery stores and wholesale clubs, and 3.75% on gas for the first $2,500 in combined grocery/wholesale club/gas purchases each quarter.

Note that the terms state “The Preferred Rewards bonus will replace the customer bonus you may already receive with the card.”, which I interpret to mean that you will lose the 10% bonus for redeeming your cash back into a Bank of America® checking or savings account.

Well, I wish my cable company would offer such nice “bundling” incentives, as now Bank of America has managed to convince me to go from only having a checking account with them to now also having a Merrill Edge brokerage account with 100 free trades per month and a new Bank of America credit card.

(Side note: Stack this offer with the separate Merrill Edge brokerage sign-up bonus.)

Not all Bank of America consumer credit cards qualify for Preferred Rewards. Another card that does qualify is the BankAmericard Travel Rewards® credit card (see review). I initially picked the BankAmericard Travel Rewards credit card myself, but will probably add this card now for the potential to get 3.5% cash back on all my Costco wholesale club purchases. Also, this card gives you cash while the Travel Rewards card rewards must be redeemed against travel purchases.

“Disclaimer: This content is not provided or commissioned by the issuer. Opinions expressed here are author’s alone, not those of the issuer, and have not been reviewed, approved or otherwise endorsed by the issuer. This site may be compensated through the issuer’s Affiliate Program.”

“The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.”

Free Amazon Credits from Apple eBooks Antitrust Settlement

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The short version: Apple settled an e-Book antitrust lawsuit for $400 million. Click here and log in to instantly check if you were awarded any credit automatically to your Amazon account. Note the purchases that count would have been made … [Read the rest]

5% Cash Back Credit Cards: Rotating Categories Update 2016

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Updated June 2016. Activation for 3rd quarter now open. Chase Freedom 5% back on Wholesale Clubs (including Costco, Sams Club, and BJs) extended until September 30th. Other notable 5% categories include restaurants, home improvement stores, and … [Read the rest]

New Costco Anywhere Visa Card by Citi Review

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Updated June 2016; Now open to new applicants. Citi and Costco have released the details of their new co-branded credit cards, the Costco Anywhere Visa® Card by Citi and the Costco Anywhere Visa® Business Card by Citi. Here's a quick overview of t … [Read the rest]

Fidelity Portfolio Advisory Service (PAS) Fee Schedule

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I Tried Harry’s Free Razor Trial and This Is What Happened…

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...that's the ad text that they used to target me, apparently someone who may be interested in bright-orange, modern-looking razor blades. I couldn't find the exact ad again, but a similar one is to the right. (Alternate title: Harry's Free Trial … [Read the rest]

Reasons For Owning High-Quality Bonds

Here are some helpful resources on owning only bonds of the highest credit quality as part of your portfolio asset allocation. David Swensen in his book Unconventional Success argued that alignment of interests is important. With stocks, the … [Read the rest]

529 Plan Interactive Comparison Map and Tax Deduction Calculator

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Investing 1% Of Your Portfolio Into Gold

A reader recently sent me a set of articles by Scott Burns about a person he calls the Rational Gold Investor here and here. I've been a long-time reader of Scott Burns because while he has been a steady proponent of passive and low-cost investing, … [Read the rest]

Big List of Bank / Credit Card Privacy Opt-Out Links

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If you have any sort of financial account, you've probably gotten one of these privacy forms in the mail: The information they are talking about can include: Social Security number How much you make (Income) How much money you have … [Read the rest]

WalletHub Review: Free Daily TransUnion Credit Score and Report

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Here's a quick review of a new credit service called WalletHub. While the stated mission is to help improve your financial situation, at its core is a service that offers free credit score, free credit reports, and free credit monitoring. In … [Read the rest]