Author Topic: What would you do with diversifying my portfolio that has Apple Stock - ESPP?  (Read 575 times)

mustachedali

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Hello guys! I'm a new mustache and would love your opinion on what to do. I worked for Apple a while ago and participated in its stock purchase plan and forgot about it. It's been sitting in my account for over two years and has a pretty decent amount inside now. I've basically signed up for DRIP and it rolls over into another Apple stock account and reinvests itself.

I was thinking of selling it and diversifying my portfolio. I have already accounts with Schwab (their index funds) and a Vanguard account (signed up but didn't contribute anything yet). I haven't set up a 401k yet since I'm not under an employer and freelance under the table (plan to register business next year). Any suggestions on the best way to optimize this? What percentage should I keep and what percentage should I diversify?

Thanks!

nereo

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I think you are putting the cart before the horse.

What I recommend you do is to sit down and decide what your asset allocation (AA) should be.  In short, how much of your portfolio do you want in various investments (stocks:bonds, but also how much in each sector).

Once you figure that out you can adjust your holdings accordingly.  What you are doing here is basically rebalancing to shift your current AA to your target AA.  In terms of timing, the easiest way is to rebalance at a pre-described date - for example the first week of every year, or the first week of each fiscal quarter.

hope that helps.