CLEARWATER WEALTH PARTNERS
Client Meeting Transcript
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CLIENT: Chen Household (Sam & Alex Chen)
DATE: October 14, 2020
TIME: 2:00 PM
MEETING: 2020 Q4 Quarterly Review (Virtual)
LOCATION: Video Conference
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TRANSCRIPT
[0:00] Sarah Chen: Good afternoon. Portfolio is at $757,000 — strong performance
through a turbulent October so far. The NLTK vest executed cleanly in September.
Election is 20 days away, and I want to spend some time on year-end planning and the
home purchase. Also, the Pfizer vaccine data is expected before year-end, which
markets are keenly watching.
[0:03] Alex Chen: If the vaccine news is positive, what happens to the market?
[0:04] Sarah Chen: The market has already priced in some probability of a vaccine by
Q1 2021. Positive news would likely trigger a rotation — tech and stay-at-home
stocks, which led all year, might pull back while cyclical and value sectors like
travel, hospitality, and energy could surge. Your 60/35/5 allocation is broadly
diversified enough to benefit from that rotation without being hurt badly by the tech
pullback.
[0:07] Sam Chen: What about the election? It's almost more stressful than March
was.
[0:08] Sarah Chen: I know. Here's what I'll say: the year following contested or
unclear election results has historically been fine for markets — the uncertainty
resolves and fundamentals reassert themselves. I'm not predicting a contested
result, but even in that scenario, I wouldn't recommend any portfolio changes. We
stay the course.
[0:10] Alex Chen: At some point we have to get back to in-person meetings. How
are you handling that?
[0:11] Sarah Chen: We're planning to offer in-person options starting in Q2 2021,
assuming vaccine rollout goes as expected. Conference Room A will be socially
distanced and we'll have appropriate protocols. I'll follow up with you in January
about your preference.
[0:13] Sam Chen: Let's talk about the home purchase. ACCT-CASH — where are we?
[0:14] Sarah Chen: $103,000. You're ahead of plan. At this rate you'll hit $110,000
by December and could potentially start a home search as early as February or March.
I want to walk through the mechanics. Once you're ready to make offers, you'll need:

a pre-qualification letter from a lender, a real estate agent engaged, and the cash
accessible within 5 to 10 business days. The ACCT-CASH money market account can wire
to escrow on short notice — no issue there.
[0:17] Alex Chen: We've started talking to a lender informally. They said we'd
qualify for up to about $650,000 based on our income.
[0:18] Sarah Chen: That's consistent with what I'd model given your income and
debt-to-income ratio. I'd encourage you to stay under $600,000 — not because you
can't qualify for more, but because the $110,000 down payment covers 20% on a
$550,000 home cleanly. Stretching higher would mean either a smaller down percentage
or drawing more cash. Let's stay disciplined.
[0:21] Sam Chen: We're aligned on that range. We've been looking at the east side
— prices are a bit lower than the city proper.
[0:22] Sarah Chen: That makes a lot of sense. On year-end planning: your estimated
taxes are in good shape. The NLTK Q3 vest income of $13,750 is covered by withholding
and the September estimated payment. Max out the 401k by December 31st — Alex,
confirm the contribution pace. 529 annual contributions: I'll process $3,000 each
for Maya and Eli in December as we discussed.
[0:25] Alex Chen: I'm on pace for $19,500 on the 401k — the 2020 limit. I'll hit
it.
[0:26] Sarah Chen: Great. Also worth noting: the CARES Act provision waiving RMDs for
2020 doesn't apply to you yet since you're not at RMD age, but it's worth knowing for
family members who might ask. One last thing: NLTK. The stock is now at $24 — it's
recovered well. Concentration is at 5.7% due to the price appreciation. I'd like to
do a small trim before year-end to bring it back under 5%. About 60 shares at $24
would do it.
[0:28] Alex Chen: Fine. Do the trim.
[0:29] Sarah Chen: I'll execute next week and send confirmation. Action items: NLTK
trim 60 shares — this month; 529 contributions $3,000 each in December; Alex
confirm 401k on pace for $19,500; begin home purchase pre-qualification process with
lender.
[0:30] Meeting adjourned
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ACTION ITEMS
1. Execute NLTK concentration trim — sell 60 shares — this month
2. 529 annual contributions $3,000 each (Maya and Eli) — December 2020
3. Alex to confirm 401k on pace for $19,500 limit by December 31
4. Clients to begin formal mortgage pre-qualification with lender — Q4 2020/Q1
2021
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CONFIDENTIAL — For client use only. Not for distribution.
