CLEARWATER WEALTH PARTNERS
Client Meeting Transcript
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CLIENT: Chen Household (Sam & Alex Chen)
DATE: March 13, 2019
TIME: 2:00 PM
MEETING: 2019 Q1 Quarterly Review
LOCATION: Conference Room A, Clearwater Wealth Partners
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TRANSCRIPT
[0:00] Sarah Chen: Welcome back. The year has started well — the S&P recovered very
strongly from the Q4 dip, up about 12% year-to-date. Your portfolio is at $617,000,
essentially back to and above the high-water mark from earlier in 2018. The Q4
selloff and the quick recovery is a perfect case study for staying invested. Your
70/28/2 allocation served you well.
[0:03] Alex Chen: We really felt those December statements. But you were right —
selling would have locked in the losses and we'd have missed this.
[0:04] Sarah Chen: It's one of the most important lessons in investing. The investors
who sold in October and November of 2018 are still trying to figure out when to get
back in. You stayed the course.
[0:06] Sam Chen: I want to talk about the trust. We've been talking about setting
one up for a couple of years now and I feel like it keeps getting pushed. Is this the
year?
[0:07] Sarah Chen: It absolutely is the year. I've been nudging you on this and I
want to make it concrete today. Here's what I'd recommend: I can refer you to the
estate attorney we work with — she's excellent, very efficient, and I'll brief her on
your situation before your first meeting. The core documents are a revocable living
trust, pour-over wills for both of you, powers of attorney, and health care
directives. For your situation — two minor children, growing assets — this is
foundational planning.
[0:11] Alex Chen: What's the cost?
[0:12] Sarah Chen: For a complete package like this, typically $3,000 to $4,500 with
a qualified estate attorney. Completely worth it for the asset protection and the
simplification of probate. I'll get you her contact information today and brief her
so she has context before you call.
[0:14] Sam Chen: Okay — let's do it. What's the first step?
[0:15] Sarah Chen: I'll send her your contact information and ask her to reach out
within the week. The first meeting is usually a discovery call where she learns about
your family structure, goals, and existing accounts. Then she drafts documents for

your review.
[0:17] Sarah Chen: On the NLTK side — the Q4 2018 vest was 625 shares at $18 as we
discussed in October. Coming up in Q2: your next tranche. This one is larger — based
on your RSU schedule, I'm expecting approximately 1,250 shares as the vesting
schedule transitions. NLTK is trading around $19 now. If the price holds, that's
about $23,750 of W-2 income. Meaningful.
[0:20] Alex Chen: Why is Q2 larger than the quarterly 625?
[0:21] Sarah Chen: Your grant schedule has you transitioning to a higher annual rate
in 2019. Think of it as two quarterly tranches combining into one semi-annual event.
Going forward after this vest, the quarterly schedule normalizes. I want to plan the
tax and diversification strategy before it happens — we have a few months.
[0:23] Sam Chen: And the home savings — how are we doing?
[0:24] Sarah Chen: ACCT-CASH is at $35,000. You're ahead of pace slightly. At this
rate, we're still looking at a 2021 window comfortably. I've been keeping that
account in a money market — currently yielding about 2.1%, which is decent for cash
right now given the Fed rate hikes. Once you cross $50,000, I may shift part of it to
short-term treasuries for a slightly better yield without taking any credit risk.
[0:26] Alex Chen: That sounds fine. We're not touching it.
[0:27] Sarah Chen: Perfect discipline. That's exactly the posture. Last item: your
401k contributions — Alex, I confirmed with you after October that you topped up to
the $18,500 limit. Great. For 2019, the limit increased to $19,000. If you haven't
already updated your contribution election, do that now to make sure you're on pace
to hit $19,000 by December.
[0:29] Sam Chen: I'll remind him.
[0:30] Sarah Chen: Action items: I'll connect you with the estate attorney this week.
Expect a call from her within 5-7 business days. Alex, update your 401k election to
the $19,000 pace. I'll finalize the NLTK Q2 vest plan and send it to you before May.
[0:30] Meeting adjourned
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ACTION ITEMS
1. Advisor to refer Chens to estate attorney — contact by March 20
2. Alex to update 401k contribution election to $19,000 annual pace — by March
31
3. Advisor to finalize NLTK Q2 vest plan (1,250 shares) and send by May 15
4. ACCT-CASH at $35,000 — continue contribution pace toward $110K target
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CONFIDENTIAL — For client use only. Not for distribution.
