The gist of it:
Initial Investment: $100 of stock on my behalf at birth
Recent Value: $60,000
Current Value: $40,000
Question(s): Because this investment is in a single stock managed by the company's brokerage, should I transfer management to Vanguard? Do I convert this single stock to an index fund? Is the downturn a good time to do so because of reduced fees? Or would I be better off leaving this single stock alone and focusing on diversifying my future investments in index funds?
The Background:
I have a sizable chunk of a single stock that has grown from a $100 investment to $60,000 before the recent drop to $40,000. I am 28 years old and very newly learning about investing and getting a handle on my finances (better late than never!). I've got a new Roth IRA set up through Betterment with $1,100 in it and recurring $100 deposits twice a month. Otherwise I do not have investments as of yet.
I've been working on an emergency fund and have 3 months of expenses saved, which I am now drawing from as I have been laid off with the Coronavirus outbreak. My income was $3000+ a month and I have been saving 50% of that. I have continued making contributions to my retirement fund. I have $2600 in credit card debt that I have been paying down, and I was able to put a freeze on the $1600 credit card with no interest accruing until June (then at a 9.75%APR), and take out a personal loan for $1000 at 3% APR to pay off the other credit card, and will begin making payments on the personal loan again in June as well.
The income I expect to receive in the next 4 months is just shy of $3000 from unemployment and self employment combined, with an additional one time $1200 stimulus check. My plan is to have $10,000 in cash in the bank saved by June, and hopefully a remote job lined up. We'll see about the job with the record shattering unemployment! My larger question is about the best way to approach savings/investments at this point in my life. I'm committed to saving aggressively, and want to put my money in the best spot for the long-term. I need a safety net for this volatile year, and am thinking of the best places to keep my cash safety net since savings accounts are not interest earners. I'm also wondering about the best approach for tackling debt/investments during this time, and the best ways to diversify.
Any and all thoughts/advice are welcome to this new Mustachian.