I came to the conclusion that the best approach to re-organizing my money is to pull out a significant amount of my stock portfolio by selling about $12,000 worth of stock. I’ll use that cash to totally pay off my consumer debt, but leave my student loan as is.
I forecast my net worth out for the next few months under the scenario that stocks are flat and I find a used motorcycle to buy for $5000. In that case my total liabilities will shrink by half to the lowest amount of debt since 2003 while I expect total assets to quickly rebound by September. Both net worth and cash flow will improve with these changes.
The longer term implications are too hard to forecast since it’s impossible to know when the stock market will rocket back up or if there will be another correction. But I will be maintaining a small balance in my investment account which will be invested in a variety of ETFs for a bit of exposure to the market.
Over the second half of the year my investments will be not in the stock market, but outsourcing work to be done for my business. The project that I’m particularly excited about is a site called TwitterRespond.com. Development has started on the site already, and I’m hopeful that it will be ready for beta testers by August. I’m also going to spend some time in the near future to freshen up some of my web properties with some new content and start to focus more on email marketing to help create some additional income.