CLEARWATER WEALTH PARTNERS
Client Meeting Transcript
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CLIENT: Chen Household (Sam & Alex Chen)
DATE: September 9, 2020
TIME: 2:00 PM
MEETING: 2020 Q3 Quarterly Review (Virtual)
LOCATION: Video Conference
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TRANSCRIPT
[0:00] Sarah Chen: Good afternoon. Another strong quarter despite a brief tech
selloff in late August. The S&P is up about 5% on the quarter and your portfolio is
at $740,000 — that's essentially a full recovery from the COVID lows and then some.
The IPS amendment is signed, the 60/35/5 rebalance is complete. We're in a good place
heading into a complicated fall.
[0:03] Alex Chen: Complicated meaning the election?
[0:04] Sarah Chen: The election is the big unknown. Presidential election years are
historically noisier for markets — more volatility — but the direction of markets in
the months following has been much more correlated with earnings and the economy than
with who wins. I'm not going to tell you one outcome is better for markets than
another because the historical data doesn't support strong conclusions either way.
[0:07] Sam Chen: What should we do in anticipation of the election?
[0:08] Sarah Chen: Nothing portfolio-specific. That's my honest answer. Investors
who moved to cash ahead of elections consistently underperformed those who stayed
invested. Your 60/35/5 allocation already provides some cushion. What we will do is
make sure your ACCT-CASH is fully funded heading into year-end, because having that
liquidity makes election volatility much less stressful.
[0:10] Alex Chen: ACCT-CASH is at what level now?
[0:11] Sarah Chen: $96,000. You're very close to the $110,000 target. At your current
savings rate, I'm estimating you'll hit the target in Q1 2021 — which sets up a
strong Q2 or Q3 home purchase window. We should start thinking about the specific
mechanics: when to pause contributions to ACCT-CASH once the target is hit, and how
to stage any liquidation needed for closing costs.
[0:14] Sam Chen: Are we going to need to sell investments for the purchase?
[0:15] Sarah Chen: I don't think so. The goal was always to fund the down payment
entirely from ACCT-CASH — not to liquidate the investment portfolio. If ACCT-CASH
hits $110-120K, you have the down payment and closing costs covered. The investment
portfolio stays invested. That's the cleanest outcome.

[0:17] Alex Chen: What if something with NLTK goes sideways? NLTK has recovered
strongly — it's at $22 now — but what if there's a company-specific issue?
[0:18] Sarah Chen: That's exactly why we've been reducing concentration
systematically. NLTK is now at about 5.2% of portfolio — within the IPS cap but not
by a lot. The Q3 vest is coming in — 625 shares at roughly $22. I'll sell 450 for
diversification per protocol, hold 175. After that vest, concentration stays
manageable. If NLTK had a significant company-specific decline, yes, it would hurt —
but you wouldn't be wiped out.
[0:21] Sam Chen: The Q3 vest — when does that happen?
[0:22] Sarah Chen: September 15th — six days from now. I'll execute the same
protocol: 450 shares sold, 175 held, proceeds reinvested per IPS allocation. The
income will be roughly $13,750 W-2 at the $22 price. I'll send you the confirmation
once it clears.
[0:24] Alex Chen: On the 529s — we've been contributing monthly but it doesn't
feel like enough.
[0:25] Sarah Chen: Let me pull the balances. Maya's 529 is at $10,200 and Eli's is
at $9,800. Maya starts college in 2029 — 9 years away. If we continue at the current
contribution rate and assume 6% average annual growth, she'll have roughly $48,000 at
matriculation. That covers about two years of public university in-state, or one year
at a private school. You have options: increase contributions now, plan to supplement
with income at the time, or a combination.
[0:27] Sam Chen: Let's increase contributions. Can we go to $3,000 per year per
child?
[0:28] Sarah Chen: Absolutely — I'll update the automatic contribution schedule for
both accounts. That gets Maya's projected balance to around $62,000 by 2029 — much
better. Action items: NLTK Q3 vest execution September 15th; 529 contribution
increase to $3,000/year per account; continue ACCT-CASH accumulation — on track for
Q1 2021 target hit.
[0:30] Meeting adjourned
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ACTION ITEMS
1. Execute NLTK Q3 vest: sell 450 shares, hold 175 — September 15
2. Increase 529 contributions to $3,000/year per account (Maya and Eli) —
effective October
3. ACCT-CASH at $96K — projected to hit $110K target by Q1 2021
4. No election-driven portfolio changes — maintain 60/35/5 allocation
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CONFIDENTIAL — For client use only. Not for distribution.
