CLEARWATER WEALTH PARTNERS
Meeting Notes
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CLIENT: Chen Household (Sam & Alex Chen)
DATE: March 12, 2025
MEETING: 2025 Q1 Quarterly Review
ADVISOR: Sarah Chen, CFP® | Clearwater Wealth Partners
LOCATION: Conference Room A, Clearwater Wealth Partners
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DISCUSSION SUMMARY
Portfolio stands at $1,355,000. The primary agenda item was the formal
implementation of the bucket strategy retirement income framework. The bucket
structure was executed at today's meeting: Bucket 1 funded at $74,000 (money market
and short-duration bonds, targeting approximately 4.2% yield, covering 24 months of
estimated expenses at $37,000/year); Bucket 2 funded at $440,000 (intermediate bond
ladder with 2–7 year maturities); Bucket 3 funded at $841,000 (diversified equity
allocation). Total portfolio remains at $1,355,000 — this is a re-labeling and
re-structuring of existing assets, not a change in total value.
The bucket framework changes how the portfolio is presented and managed. Going
forward, quarterly reviews will include a bucket status report: Bucket 1 is
replenished annually from Bucket 2 income; Bucket 2 is replenished from Bucket 3
gains during favorable equity years. In adverse equity years, the Chens draw from
Bucket 1 and 2 without touching Bucket 3, giving equities time to recover without
forced selling. This structure is particularly well-suited to the Chens' 7-year
pre-retirement horizon.
The Maya 529 adequacy gap was revisited. The advisor modeled three scenarios: (a)
status quo contributions — Maya arrives at college with approximately $47,500
against a projected $136,000–$145,000 cost; (b) increasing annual contributions to
$8,000/year — approximately $57,000 at matriculation; (c) the 5-year front-load
election — contributing $90,000 now, resulting in approximately $108,000 at
matriculation, covering about 75% of projected costs. The Chens asked for time to
consider the front-load option and will make a decision by Q2.
Estate planning review: the revocable living trust established in 2021 was reviewed
for the first time since inception. The Chens confirmed that both children are
named contingent beneficiaries and that Sam and Alex are co-trustees. No
amendments were needed. The advisor recommended the trust be reviewed by the estate
attorney every 3–5 years or at any major life event.

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ACTION ITEMS
1. Bucket strategy implemented — document allocation; send client summary of
bucket structure
2. Maya 529 front-load decision: Chens to decide by Q2 2025 meeting
3. Estate trust review: schedule attorney appointment — by year-end 2025
4. Bucket 1 replenishment protocol: transfer from Bucket 2 income in Q4 2025
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CONFIDENTIAL — For client use only. Not for distribution.
