CLEARWATER WEALTH PARTNERS
Meeting Notes
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CLIENT: Chen Household (Sam & Alex Chen)
DATE: March 18, 2020
MEETING: 2020 Q1 — Emergency Review (COVID-19)
ADVISOR: Sarah Chen, CFP® | Clearwater Wealth Partners
LOCATION: Video Conference
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DISCUSSION SUMMARY
This was an unscheduled emergency meeting convened on March 18, 2020, eight days
before the S&P 500 reached its COVID-19 trough. The advisor contacted the Chens
proactively after markets declined approximately 27% from their February peak. The
portfolio, which had been approximately $785,000 in mid-February, stood at roughly
$610,000 at the time of the call.
The primary discussion was whether to act on the portfolio. The advisor recommended
against moving to cash, explaining that market recoveries are concentrated in a small
number of trading days and that missing the rebound — as clients who moved to cash
invariably do — permanently impairs long-term wealth. The Chens' income is stable:
NLTK is fully remote and operating normally; Sam's employer is also unaffected.
With ACCT-CASH at $91,000, the household has months of financial runway independent
of the investment portfolio. The advisor recommended maintaining the current
allocation.
The IPS-2016 allocation of 70/28/2 remains in effect. Due to the equity selloff, the
portfolio has drifted toward 65/33/2 — near the lower equity band. The advisor will
monitor but did not recommend rebalancing into equities given the extreme
uncertainty. A risk tolerance reassessment questionnaire will be sent to both
Chens before the May meeting to determine whether the IPS allocation warrants a
formal amendment.
No trades were executed. The upcoming Q2 NLTK vest was discussed: vests occur on
schedule regardless of stock price. A lower vest price means lower W-2 income and a
lower cost basis on retained shares — partially mitigating the downside. The advisor
will prepare an updated vest analysis once Q2 pricing is clearer.
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ACTION ITEMS
1. Send risk tolerance reassessment questionnaire to both Chens — by April 15
2. No portfolio trades — hold current allocation; monitor for IPS band breach
3. ACCT-CASH maintained at $91K — do not deploy to market under any circumstances
4. Prepare NLTK Q2 vest analysis given lower anticipated vest price
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CONFIDENTIAL — For client use only. Not for distribution.
