This post was inspired by @moementumfinance interview with @riggs about using Credit Cards to build wealth The "Free Equity" Engine: 2% Cash Back $FZROX Most people take their credit card cash back as a statement credit or spend it on coffee. Here is how to automate it into long-term equity growth for $0 out of pocket Here is the Set Up Put all recurring monthly expenses (utilities, groceries, insurance) on the Fidelity Rewards Visa (2% flat cash back). Set your rewards to auto-redeem directly into your brokerage or IRA. Set an auto-invest schedule to throw 100% of those rewards into $FZROX (Fidelity ZERO Total Market Index Fund). Why $FZROX Expense Ratio 0.00% (Zero management fees dragging down returns) Diversification Instant exposure to the entire US stock market The Math Breakdown 2% monthly cash back over 12 months = 24% of a single month's entire budget redirected into free equities every year. Compound that 24% annual spend recovery over decades inside a total market index fund, and you're building a secondary portfolio funded entirely by the credit card issuer's money. Zero fees. Zero manual effort. 100% self-funding portfolio growth. Are you auto-investing your credit card rewards, or using another cash-back strategy? Drop your setup below! 👇
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15 Comments
Joh Caldwellaaa@Annaaaaa · 23d
Yup. I finally got a Robinhood Gold card and that's 3x on all purchases and send it to my Roth.
Bisho @Gilbertaaaa · 23d
I actually do exactly this haha. I use my fidelity visa for most of my purchases and send it straight into my roth 🙌🏽
Andre @Sweeneya · 23d
I do something like this except with robinhood %3 back
Koch H@Noahaaaaaaaaa · 23d
What's the closest available in Canada? I'm not aware of any free etf but know you can transfer the cashback on my bmo card to investor line or bank account. WS you can deposit the cash use it as credit or buy something with the cashback.
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