CLEARWATER WEALTH PARTNERS
Client Meeting Transcript
____________________________________________________________________________________
_
CLIENT: Chen Household (Sam & Alex Chen)
DATE: September 11, 2019
TIME: 2:00 PM
MEETING: 2019 Q3 Quarterly Review
LOCATION: Conference Room A, Clearwater Wealth Partners
____________________________________________________________________________________
_
TRANSCRIPT
[0:00] Sarah Chen: Big news first: the Chen Family Revocable Trust was formally
created and signed on September 10th — yesterday. That is a landmark planning
achievement. Congratulations, genuinely. The markets have been volatile but
resilient — S&P is up about 20% year-to-date. Portfolio is at $700,000. And there's a
quarterly NLTK vest we need to process.
[0:03] Sam Chen: The trust signing felt like a relief more than a celebration.
Like we'd been putting this off for years.
[0:04] Sarah Chen: It's one of those things that's easy to defer because nothing bad
is happening. The time to do it is exactly when you don't need it — not in a crisis.
You're done. Now we execute the follow-through, which is the important part.
[0:06] Alex Chen: What does follow-through look like?
[0:07] Sarah Chen: Four things. First, the cash management account — ACCT-CASH —
needs to be retitled into the trust name. We're handling that this week through the
custodian. Second, IRA1 and the Roth IRA pass by beneficiary designation, not through
the trust, so those need to be updated separately — Sam stays as primary, the trust
becomes contingent on both. I have the forms ready. Third, the taxable brokerage
account also gets retitled into the trust. Fourth, any future accounts we open will
be opened in the trust name from the start.
[0:11] Sam Chen: Do we need to sign anything today for the beneficiary updates?
[0:12] Sarah Chen: Yes — I have the beneficiary forms right here. Let's do that
before you leave today. It takes about ten minutes and it's the most important
follow-through step.
[0:13] Alex Chen: Let's do it.
[0:14] Sarah Chen: Good. Now the NLTK Q3 vest. 625 shares vested September 5th at
$21.00 per share — $13,125 W-2 income. Per the standard protocol, we sold 450 shares
for diversification, proceeds of $9,450 into ACCT-TAXABLE. Holding 175 shares. NLTK
concentration has ticked up slightly given the higher vest price — approximately 6.1%
of total portfolio. That's above our 5% IPS cap. I want to trim the existing holding
slightly to bring it back under threshold.

[0:17] Alex Chen: How much do we need to trim?
[0:18] Sarah Chen: About 80 to 100 shares from the existing held position. At $21,
that's $1,680 to $2,100 in proceeds. We'll have a short-term capital gain since these
were held less than a year — modest, probably $200 to $300 in taxable gain. I'd
recommend doing this next week.
[0:20] Sam Chen: Fine with us. Do whatever keeps it compliant.
[0:21] Sarah Chen: I'll execute that next week and send you the trade confirmation.
On the home savings — ACCT-CASH is now fully retitled into the trust name and
standing at $53,000. You had the initial 529 contributions come out in Q2, which
explains the dip from $65,000. Contributions are resuming. We're comfortably on
track for 2021.
[0:24] Alex Chen: Are we going to have enough for a 20% down payment or are we
looking at a smaller down?
[0:25] Sarah Chen: The target is $110,000 to $120,000, which is 20% on a $550,000 to
$600,000 home — that eliminates PMI and usually gets you a better rate. At your
contribution pace, we hit that by mid-2021. If you want to accelerate, we could
redirect some of the NLTK vest proceeds into ACCT-CASH rather than the investment
portfolio, but that's a tradeoff I'd want to model explicitly.
[0:27] Alex Chen: Let's not change the plan yet. The 2021 timeline works.
[0:28] Sarah Chen: Agreed — the current plan is solid. 529 update: Maya's account is
at $5,400 after Q2 opening and market growth. Eli's is at $5,350. I'll do annual
contribution top-ups for both in December. Action items: beneficiary forms signed
today; NLTK concentration trim next week; continue ACCT-CASH accumulation; 529
annual contributions in December.
[0:30] Meeting adjourned
____________________________________________________________________________________
_
ACTION ITEMS
1. Sign IRA1 and RIRA beneficiary designation forms today — Sam primary, trust
contingent
2. Execute NLTK concentration trim — sell 90 shares from held position — next week
3. ACCT-CASH retitling into trust name — in process this week
4. 529 annual contributions ($2,000 each) scheduled for December
____________________________________________________________________________________
_
CONFIDENTIAL — For client use only. Not for distribution.
