Hi Shiny Things and BBCW, I have restricted stock plan listed in NYSE vesting over 5 years with this year already vested.
Based on market price, this year vesting is ~ US$15k.
My current investment portfolio is ~ S$55k with 20% in MBH, 20% in ES3 and 60% in IWDA.
S$20k of my emergency fund is put in StashAway.
Just FYI, emergency reserve funds are ordinarily stored in principal stable vehicles, such as government insured bank accounts and savings bonds. Whether you should have funds invested via Stashaway should be evaluated on its own terms. There's really no meaning in labeling those Stashaway funds, specifically, as "emergency." Your holdings in MBH, ES3, IWDA, and vested U.S. listed shares are just as liquid and just as "emergency" if they're not in restricted accounts (such as CPF Investment Scheme and Supplementary Retirement Scheme accounts).
The point of an emergency reserve is to have some pool of funds that can tide you over for 6 or more months during some emergency, such as a bout of unemployment, without tapping your long-term investments. Naturally, in a dire, long emergency, you might have to tap your long-term investments. You hope not to need to do that, of course.
My plan is to sell the stock and fund my investment portfolio based on current ratio.
Does this plan make sense for people that receive stock from their companies?
If you're allowed to sell each tranche upon vesting, sure, yes, that's typical. You have something like US$60K of this stock that'll be vesting (depending on the market price when each tranche vests), and that's a gigantic percentage of your current total portfolio. You really don't want to be so concentrated in a single stock, so you ought to unwind that concentration to stay more diversified as soon as allowed. Also, the U.S. tax treatment (dividend and estate) on U.S. listed stocks isn't all that favorable to non-U.S. persons.
Also, for wire transfer of USD from Etrade, is sending to local bank SGD account the best option? I will then use it to fund my MBH, ES3 and IWDA through DBS Vickers and IB.
If you're allowed to send the funds directly from your stock plan's custodian (Etrade I presume) to Interactive Brokers, that'd be best by far. Another, probably even better option (especially if Etrade charges a sales commission) is to request a "partial ACATS" transfer of the vested shares themselves into your Interactive Brokers account, without selling the shares at Etrade. Then you use IB to sell the shares, using the U.S. dollar proceeds for the IWDA leg of your ordinary investing. There shouldn't be any need to convert those particular U.S. dollars to Singapore dollars since you have ongoing IWDA buying. And that'll mean reducing or pausing your Singapore dollar deposits into your IB account and conversion of Singapore dollars to U.S. dollars since you'll have a supply of U.S. dollars from the sale of your vested shares. To request a partial ACATS of the shares themselves you would initiate the request at Interactive Brokers, and then they would work directly with Etrade to complete the in-kind transfer of the vested shares.
