CLEARWATER WEALTH PARTNERS
Client Meeting Transcript
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CLIENT: Chen Household (Sam & Alex Chen)
DATE: October 12, 2022
TIME: 2:00 PM
MEETING: 2022 Q4 Quarterly Review
LOCATION: Conference Room A, Clearwater Wealth Partners
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TRANSCRIPT
[0:00] Sarah Chen: The 30-day wash sale window on the TLH closed today — and the
market cooperated by falling further, so the losses we realized in September now look
even better in hindsight. Portfolio is at $862,000 — slightly up from the September
meeting low. The S&P is still down about 20% for the year but has bounced somewhat
from the October trough. I want to do two things today: finalize the 2023 NLTK
planning and introduce the donor-advised fund concept ahead of what will be a
high-income year.
[0:05] Alex Chen: You've been teasing the 2023 NLTK event. Tell us what we're
actually looking at.
[0:06] Sarah Chen: Your RSU schedule shows a substantial vest in the first half of
2023 — well above the 625-share quarterly tranches you've been receiving. I don't
have the exact share count confirmed yet, but based on your grant agreement and the
vesting cliff, you're likely looking at somewhere between 2,000 and 3,000 shares. At
today's NLTK price of $15, that's $30,000 to $45,000 — but if NLTK recovers toward
the $40 to $50 range where it traded last year, the income could be $80,000 to
$150,000.
[0:10] Sam Chen: That's an enormous range.
[0:11] Sarah Chen: It is, and it's driven entirely by NLTK's stock price at vest. We
can't control that. What we can control is the planning. Three things I want to put
in place before year-end: first, make sure your withholding is calibrated for a
high-income year. Second, plan for a donor-advised fund contribution to offset
income with charitable giving. Third, confirm our $15,500 TLH carryforward is
properly documented.
[0:14] Alex Chen: Walk us through the donor-advised fund.
[0:15] Sarah Chen: A donor-advised fund — or DAF — is an account you fund with
appreciated assets, claim a charitable deduction immediately, and then distribute
grants to charities on your own timeline. The power in a high-income year: you
contribute appreciated NLTK shares directly into the DAF. You get a deduction for the
full fair market value of those shares. You never recognize the capital gain on those
shares. Then you grant money from the DAF to the charities you care about over months

or years. It front-loads the deduction exactly when your marginal rate is highest.
[0:19] Sam Chen: We've wanted to give more to the school foundation and the arts
organizations we care about. This could be a vehicle for that.
[0:20] Sarah Chen: Exactly. I'd recommend opening the Clearwater Giving Fund — our
affiliated DAF — before April so it's ready when the vest happens. The opening takes
about two weeks. Then we decide at vest time how many shares to contribute in-kind
versus sell.
[0:22] Alex Chen: Let's plan to open it in Q1. What else?
[0:23] Sarah Chen: The carryforward — I need to confirm the $15,500 number is
formally captured in tax records. Your CPA should have it. I'll reach out to him
before April 15th. Also, the NLTK Q4 vest happened December 1st — 625 shares at
$15.50. $9,688 income. Sold 450, held 175. Concentration is minimal at these prices —
under 2% of portfolio.
[0:26] Sam Chen: Are we going to be okay on estimated taxes this year?
[0:27] Sarah Chen: For 2022, yes — the vest prices were low all year, so the
incremental income from NLTK was modest. The TLH also eliminated your capital gains
liability. You should be very close to square with what's been withheld from salary.
I'll run the final model in November and flag if you need a January 15th payment. My
current estimate: you owe less than $500 at filing.
[0:29] Alex Chen: That's a relief given how much we've thought about taxes this
year.
[0:30] Sarah Chen: The planning is working. Action items: open Clearwater Giving Fund
DAF in Q1 2023; coordinate with CPA on $15,500 TLH carryforward documentation; model
2023 income scenarios for NLTK; confirm no estimated tax payment needed January 15th.
[0:30] Meeting adjourned
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ACTION ITEMS
1. Open Clearwater Giving Fund (DAF) in Q1 2023 — ahead of expected large NLTK vest
2. Coordinate with CPA on $15,500 TLH carryforward documentation — by April 15,
2023
3. Model 2023 NLTK income scenarios (low/mid/high vest price) — send by January
4. Confirm 2022 estimated tax: expect minimal balance due; no Jan 15 payment
anticipated
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CONFIDENTIAL — For client use only. Not for distribution.
