This month, our valued CIBC Private Banking partner Meghan Meade-Flynn brought the article "Missing the Point" to our attention, so we asked her to share her insights and experience with loyalty point programs.

"When helping clients decide on which loyalty program to select I start by breaking down the decision into two parts; short-term benefit considerations and longer-term considerations.

The short-term benefits to consider are the type of rewards you earn and how you anticipate using them. Loyalty rewards can either be redeemed for cash or points towards travel and merchandise. Generally speaking, I tell clients that if they plan on travelling once or twice a year, then a credit card with points can be used to their advantage. If they are not travelers, then a credit card with a cash option has more benefit.

To understand the long-term considerations, I suggest clients read the article "Missing the Point" which outlines some financial and tax considerations of loyalty point redemptions. Many of us don't think of our points as financial assets but we should."

We think you'll find Meghan's guidance of value.

Very best regards,

CIBC Wood Gundy

Smith Falconer Financial Group