CLEARWATER WEALTH PARTNERS
Client Meeting Transcript
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CLIENT: Chen Household (Sam & Alex Chen)
DATE: March 10, 2021
TIME: 2:00 PM
MEETING: 2021 Q1 Quarterly Review
LOCATION: Conference Room A, Clearwater Wealth Partners
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TRANSCRIPT
[0:00] Sarah Chen: Great to be back in person — it's been over a year. The vaccines
are rolling out, markets are strong, and you have a real home purchase coming into
view. Portfolio is at $825,000 — up from $792,000 at year-end. Vaccine optimism and
strong earnings are driving a rotation into cyclical stocks. Things feel genuinely
better.
[0:03] Sam Chen: It's good to be here in person. There's something about being in
the same room that works better.
[0:04] Sarah Chen: I agree completely. I think video worked well for the crisis
meetings, but real planning works better face to face. Let's get into it. Three
things on the agenda today: ACCT-CASH and home purchase activation, the NLTK Q1 vest,
and a preview of the fee structure conversation we'll formalize in Q2.
[0:07] Alex Chen: Let's start with the house. We have a pre-qual letter, we're
working with a real estate agent, and we've made one offer that didn't go through.
We're ready.
[0:08] Sarah Chen: Good. ACCT-CASH is at $113,000 — you've crossed the $110,000
target. Congratulations, that's two and a half years of disciplined saving paying
off. Here's the operational question: your home search is active and competitive. I
need you to be able to move on a property within days. The ACCT-CASH money market can
wire within one business day — you're set. I'll flag one thing: once you're in active
negotiation and have an accepted offer, I need 48 hours notice to stage the wire.
Keep me in the loop.
[0:12] Sam Chen: We will — we've been sending you listings.
[0:13] Sarah Chen: I've been watching them. The east side properties you're looking
at are appropriate for the budget. Now — NLTK Q1 vest. Scheduled for March 15th. 625
shares, current price about $26. That's $16,250 W-2 income. Same protocol: sell 450,
hold 175. Concentration has been at about 5.8% heading into this vest, which is
elevated. After the sale the concentration should drop to about 5.0% — right at the
cap. I'll monitor closely.
[0:16] Alex Chen: NLTK has been doing well. The pandemic accelerated a lot of
their customers' software adoption.

[0:17] Sarah Chen: It has. And that's great news for your compensation. But from a
portfolio standpoint, the strength in NLTK is exactly when we need to be disciplined
about diversifying. When a position is going up, it's psychologically harder to sell
— but that's when the concentration risk is highest and when diversifying is most
beneficial. We're going to execute the sale on March 15th as planned.
[0:20] Alex Chen: Understood. No argument from me.
[0:21] Sarah Chen: Good. Now the fee structure preview: you've been on the original
1.00% flat advisory fee since 2016. Your AUM has grown significantly — you're
approaching $825,000 today. I'm planning to propose a tiered schedule that rewards
your growth: 0.85% on the first $1.5 million, 0.70% on the next $1.5 million, 0.55%
above $3 million. In concrete terms: at your current AUM, you'd pay 0.85% versus
1.00% today. That's about $1,250 in savings annually right now, growing as your AUM
grows.
[0:25] Sam Chen: So we'd pay less?
[0:26] Sarah Chen: Yes — a lower effective rate. I'll formalize the amendment for
your review and signature in Q2. I want to be transparent: this is a fee reduction
for you. I'm proposing it proactively because it's the right structure as the
relationship has grown, not because you asked.
[0:28] Alex Chen: We appreciate that.
[0:29] Sarah Chen: Action items: NLTK Q1 vest execution March 15th; I'll have the fee
amendment draft to you by May 15th for Q2 discussion. Keep me in the loop on the home
purchase — real-time communication when offers are imminent.
[0:30] Meeting adjourned
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ACTION ITEMS
1. Execute NLTK Q1 vest — sell 450 shares, hold 175 — March 15
2. Draft fee amendment (tiered 0.85%/0.70%/0.55%) for Q2 discussion — by May 15
3. ACCT-CASH at $113K — fully funded for home purchase; maintain ready-to-wire
status
4. Advisor on standby for home purchase wire staging — 48-hour notice required
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CONFIDENTIAL — For client use only. Not for distribution.
