CLEARWATER WEALTH PARTNERS
Client Meeting Transcript
____________________________________________________________________________________
_
CLIENT: Chen Household (Sam & Alex Chen)
DATE: June 9, 2021
TIME: 2:00 PM
MEETING: 2021 Q2 Quarterly Review
LOCATION: Conference Room A, Clearwater Wealth Partners
____________________________________________________________________________________
_
TRANSCRIPT
[0:00] Sarah Chen: Big items today: home purchase is imminent, the fee amendment is
ready to sign, and I want to walk through the down payment liquidation plan so you're
fully prepared when you get an accepted offer. Portfolio is at $858,000. Markets are
up about 12% year-to-date. Everything is working.
[0:03] Alex Chen: We have an offer pending right now, actually. We submitted
yesterday.
[0:04] Sarah Chen: Then let's make the down payment plan the first thing we do.
What's the offer price?
[0:05] Sam Chen: $547,000. They countered asking us to remove the inspection
contingency, which we're not comfortable with.
[0:06] Sarah Chen: I'd support keeping the inspection — you protect yourself from
discovering structural issues after close. On the down payment: $547,000 at 20% is
$109,400. Closing costs typically run another $8,000 to $12,000 in your market. So
total cash need is $117,000 to $121,400. ACCT-CASH is at $118,000. That's very close
— workable but tight on the upper end of closing costs.
[0:09] Sam Chen: What if closing costs come in higher?
[0:10] Sarah Chen: I've modeled a buffer. We can pull an additional $5,000 from the
taxable brokerage account as a fallback — liquidating a portion of STBIX, the
short-term bond fund. That's a low-risk liquidation with minimal tax impact. I'd
rather have that plan in place than be scrambling at closing.
[0:12] Alex Chen: Makes sense. Have it ready.
[0:13] Sarah Chen: It's staged. I'll be ready to wire within one business day of
receiving escrow instructions. The liquidation of STBIX, if needed, takes 2 business
days to settle. So I need the earnest money wire information and closing date at
least 3 business days before close. Keep me posted.
[0:15] Sam Chen: We will. The earliest we'd close is probably mid-August.
[0:16] Sarah Chen: That timeline works perfectly. Mid to late Q3 — I'll have the
liquidation ready in advance. Now the fee amendment. DOC-FeeAmendment-2021-001.
Effective July 1st, the advisory fee moves to the tiered structure: 0.85% on the

first $1.5 million, 0.70% on the next $1.5 million, 0.55% above $3 million. At your
current AUM, the effective rate is 0.85% — a reduction from the prior 1.00% flat
rate. I have the document here for signature.
[0:20] Alex Chen: We reviewed the draft you sent. It looks correct.
[0:21] Sarah Chen: Any questions before signing?
[0:22] Sam Chen: Just confirming — the 0.85% applies to the entire balance, not
just above some threshold?
[0:23] Sarah Chen: On the first $1.5 million — yes, the full balance is at 0.85%.
Once you cross $1.5M, every dollar above that is at 0.70%. It's additive as you grow.
The signed copy goes into your vault and you'll get a counter-signed PDF from us
within 48 hours.
[0:25] Alex Chen: Let's sign.
[0:26] Sarah Chen: Thank you. Effective July 1st, your billing reflects the new
tiered schedule. The NLTK Q2 vest was 625 shares at $28 in June — $17,500 W-2 income,
standard protocol: 450 sold, 175 held. Concentration is at 5.4% — slightly above
target but not alarming given the home purchase taking attention. We'll trim after
the purchase closes.
[0:28] Sam Chen: 529 update?
[0:29] Sarah Chen: Maya is at $14,200, Eli is at $13,600. Both on track with the
$3,000/year contribution schedule. Good growth year for the equity-heavy positions
in both accounts. Action items: home purchase wire ready to execute on your signal;
fee amendment signed today effective July 1st; NLTK trim post-purchase close; 529
annual top-up in December.
[0:30] Meeting adjourned
____________________________________________________________________________________
_
ACTION ITEMS
1. Execute DOC-FeeAmendment-2021-001 — signed today, effective July 1, 2021
2. Stage home purchase wire for $117-121K — execute within 1 business day of
escrow instructions
3. NLTK concentration trim pending — execute after home purchase closes
4. 529 annual contributions ($3,000 each) scheduled for December
____________________________________________________________________________________
_
CONFIDENTIAL — For client use only. Not for distribution.
