CLEARWATER WEALTH PARTNERS
Meeting Notes
____________________________________________________________________________________
_
CLIENT: Chen Household (Sam & Alex Chen)
DATE: March 9, 2022
MEETING: 2022 Q1 Quarterly Review
ADVISOR: Sarah Chen, CFP® | Clearwater Wealth Partners
LOCATION: Conference Room A, Clearwater Wealth Partners
____________________________________________________________________________________
_
DISCUSSION SUMMARY
Portfolio stands at $912,000 — the first time the household has been above $900,000
post-home-purchase. Equity markets declined approximately 5% in Q1 2022 driven by
rising inflation concerns and the beginning of the Federal Reserve rate hiking cycle.
The portfolio's 60/35/5 allocation provided some buffer versus a 100% equity
posture. No rebalancing was triggered.
The Q1 2022 NLTK vest occurred in March: 625 shares at $40 per share. Protocol: 450
sold ($18,000 proceeds), 175 retained. The cumulative retained position is now
approximately 2,275 shares. At $40/share, the position is valued at $91,000 —
approximately 10% of portfolio. The vest income continues to add to AGI, which the
advisor estimated will be approximately $340,000 for 2022 (salary + vest + investment
income).
The 2023 NLTK liquidity event planning was introduced. Alex's NLTK grant is
expected to produce a large accelerated or final vest event in 2023, anticipated to
be 2,000–3,000 shares based on current vesting schedule. This is the largest
anticipated NLTK income event and requires advance planning: estimated tax payments,
DAF donation sequencing, portfolio concentration management, and potentially a Roth
conversion analysis. The advisor committed to having a full 2023 event plan ready by
the Q2 meeting.
The Chens raised rising interest rates and their effect on the bond portfolio. The
advisor explained that rising rates cause short-term bond price declines but
increase the forward yield on reinvested income — which is net positive for long-term
bond holders. The current bond duration in the portfolio is approximately 4.5 years,
providing moderate rate sensitivity.
____________________________________________________________________________________
_

ACTION ITEMS
1. Prepare 2023 NLTK event plan for Q2 meeting — include DAF analysis, estimated
tax modeling, concentration strategy
2. Review bond duration and consider shortening if rate hikes accelerate — assess
at Q2
3. Confirm Q2 estimated tax payment with CPA given higher AGI trajectory
____________________________________________________________________________________
_
CONFIDENTIAL — For client use only. Not for distribution.
