CLEARWATER WEALTH PARTNERS
Client Meeting Transcript
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CLIENT: Chen Household (Sam & Alex Chen)
DATE: June 12, 2019
TIME: 2:00 PM
MEETING: 2019 Q2 Quarterly Review
LOCATION: Conference Room A, Clearwater Wealth Partners
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TRANSCRIPT
[0:00] Sarah Chen: Good news across the board today. The trust is drafted and
awaiting final signatures — a major milestone. The S&P 500 is up about 18%
year-to-date, which is exceptional through June. Portfolio is at $668,000. And the
NLTK vest just executed this week. A lot to cover, but all of it positive.
[0:03] Alex Chen: The after-tax amount on the vest came in a little lower than I
expected. I thought we'd modeled it at around $15,000 net but it came in around
$13,800.
[0:05] Sarah Chen: That's the ordinary income tax hit at play. RSUs vest and the
value is treated as W-2 income at your marginal federal rate — 24% plus state tax.
The first tranche was 1,250 shares at $19.50 per share — that's $24,375 of
compensation income. After federal and state withholding, the net cash and share
value is in that $14,000 range. Exactly in line with the model. The withholding rate
looked lower in the abstract, but state tax added up.
[0:08] Sam Chen: So the full $24,375 shows up on Alex's W-2?
[0:09] Sarah Chen: It does — it's in Box 1 of the W-2, lumped in with salary and
other compensation. You won't see it as a separate line item, which is part of why
people are sometimes surprised by the gross W-2 amount at tax time. For execution: we
sold 900 shares for diversification, holding 350 in ACCT-TAXABLE. The proceeds are
invested per your IPS allocation. NLTK concentration is now at approximately 5.8% of
total portfolio — slightly elevated. I want to keep an eye on that and bring it back
under 5% with the next vest.
[0:12] Alex Chen: And the Q2 estimated tax payment — when is that due?
[0:13] Sarah Chen: June 17th — five days from now. I modeled it at $5,400. This
covers the Q2 estimated payment including the incremental income from the NLTK vest.
I'd recommend initiating that transfer today given the timeline.
[0:15] Sam Chen: I'll do it when I get home.
[0:16] Sarah Chen: Perfect. Now — the trust. We have the draft from the attorney.
Have you both had a chance to review it?

[0:17] Alex Chen: We did. It looked right to me but I'll be honest — some of the
legal language is dense. The main thing I wanted to confirm is that if something
happens to both of us, the kids are protected.
[0:18] Sarah Chen: That's exactly what the Chen Family Revocable Trust
accomplishes. It names the successor trustee — your designated family member — and
specifies the distribution terms for Maya and Eli until they reach adulthood. It
avoids probate, which means assets transfer much faster and with full privacy. The
pour-over will captures anything that isn't titled in the trust. Everything works
together.
[0:21] Sam Chen: The signing is next week?
[0:22] Sarah Chen: Thursday the 20th, at the attorney's office. Once it's signed, the
next step is retitling assets into the trust name and updating beneficiary
designations on the retirement accounts. I'll coordinate that immediately after
signing. IRA1 and the Roth IRA — Sam remains the primary beneficiary on both, and
the trust becomes the contingent.
[0:25] Sarah Chen: On the 529 accounts — with the trust now establishing the formal
family structure, I'd like to open education savings accounts for both children this
quarter. I'm recommending $5,000 initial contribution per child from ACCT-CASH.
Maya's will go into an age-based moderate growth portfolio given her 2029 college
horizon. Eli has more time, so a more equity-heavy growth portfolio makes sense.
[0:27] Alex Chen: Yes, let's open both. We've been meaning to do this for a
while.
[0:28] Sarah Chen: I'll have the paperwork ready by end of this week. On home
savings: ACCT-CASH is at $65,000 after the 529 initial contributions. We need
$110,000 to $120,000. At your current savings rate, we're on track for a 2021 window
— possibly Q1 or Q2 of 2022 depending on the market timing.
[0:29] Sam Chen: The timeline feels right. We're not in a rush but it's coming
into focus.
[0:30] Sarah Chen: Action items: Sam initiates Q2 estimated tax payment of $5,400
by June 17th. Trust signing June 20th. I'll open 529 accounts for Maya and Eli
with $5,000 each from ACCT-CASH. ACCT-CASH contributions continue toward the $110K
home target.
[0:30] Meeting adjourned
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ACTION ITEMS
1. Sam to initiate Q2 estimated tax payment of $5,400 — by June 17, 2019
2. Trust signing appointment — June 20, attorney's office
3. Open 529-Maya and 529-Eli with $5,000 initial contribution each from
ACCT-CASH
4. Continue ACCT-CASH accumulation toward $110K home purchase target — ongoing

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CONFIDENTIAL — For client use only. Not for distribution.
