CLEARWATER WEALTH PARTNERS
Meeting Notes
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CLIENT: Chen Household (Sam & Alex Chen)
DATE: September 9, 2020
MEETING: 2020 Q3 Quarterly Review
ADVISOR: Sarah Chen, CFP® | Clearwater Wealth Partners
LOCATION: Video Conference
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DISCUSSION SUMMARY
Portfolio grew to $783,000 by September, continuing its recovery from the COVID lows.
The new 60/35/5 allocation from the Q2 IPS amendment is being phased in: equity is
currently at 63%, fixed income at 33%, and cash at 4%. The advisor expects the target
allocation to be fully implemented by year-end through normal rebalancing and cash
flow direction.
The Q3 NLTK vest completed in August: 625 shares at $34 per share. Protocol followed
— 450 sold ($15,300 proceeds), 175 retained. Cumulative retained position:
approximately 1,575 shares at a blended basis near $31.50. At the current NLTK price
of $34, the position is valued at approximately $53,550 — about 6.8% of portfolio.
The advisor noted this is now below the previously concerning concentration levels
due to portfolio growth.
The advisor introduced the donor-advised fund concept in greater detail at this
meeting. Given that future NLTK vests will generate significant taxable income,
contributing highly appreciated shares directly to a DAF (rather than selling first)
eliminates capital gains and provides a charitable deduction for the full fair market
value. The Chens expressed interest and asked for a formal DAF analysis before the
next major vest event. The advisor committed to preparing a comparison of the
after-tax cost of charitable giving with and without a DAF.
The Chens raised remote-work-related expenses and whether any home office
deductions were available. The advisor noted that W-2 employees cannot deduct home
office expenses under current tax law (suspended for 2018–2025) and deferred the
question to the CPA for confirmation.
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ACTION ITEMS

1. Complete IPS 60/35/5 allocation transition by year-end
2. Prepare DAF analysis for next major NLTK vest event — have ready by Q4
3. Confirm home office deduction question with CPA — by October 31
4. Home purchase timeline: confirm 2021 restart at Q4 meeting
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CONFIDENTIAL — For client use only. Not for distribution.
