Money is scarce, times are hard, and it’s time to get out…the credit card?
While that may be the last thing some advisors would tell clients during an economic downturn, the Fidelity Retirement Rewards American Express Card might make some FAs change their tune.
Unlike most rewards cards, which offer points or cash refunds, Fidelity’s new card — available December 10 — helps fund the cardholder’s retirement savings.
Here’s how it works: Investors earn two points for each dollar spent on purchases. There is no annual fee, caps or limits on rewards.
Once a card member reaches a minimum of 5,000 points, or $2,500 in purchases, points can be automatically swept as a $50 current year contribution into the user’s designated Fidelity IRA. If the card member has maxed out their IRA contribution for that year, they can continue to accrue points and restart automatic deposits to their IRA the next year.
Rewards from the card can be swept into several types of Fidelity IRA accounts, including traditional IRAs, Roth IRAs and SEP IRA accounts. Investors also have the flexibility, at any time, to automatically redeem their rewards as cash into other Fidelity accounts or accumulate rewards and redeem them for travel, merchandise and other rewards.