CLEARWATER WEALTH PARTNERS
Client Meeting Transcript
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CLIENT: Chen Household (Sam & Alex Chen)
DATE: June 14, 2023
TIME: 2:00 PM
MEETING: 2023 Q2 Quarterly Review
LOCATION: Conference Room A, Clearwater Wealth Partners
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TRANSCRIPT
[0:00] Sarah Chen: Welcome back. The April NLTK event is behind us, and I think it
went about as well as we could have planned. Portfolio is at $1,043,000 — you crossed
a million dollars for the first time. The S&P is up roughly 14% year-to-date on AI
enthusiasm and a resilient economy. A lot happened in April; I want to walk through
every piece carefully.
[0:04] Alex Chen: I want to make sure I understand the tax picture completely
before we file.
[0:05] Sarah Chen: Let's go through it step by step. April 12th — 2,667 NLTK shares
vested at $45.00 per share. That is $120,015 of W-2 income, reported on your paystub.
The company withheld at the supplemental rate but that withholding won't fully cover
the tax at your marginal bracket — we knew that going in.
[0:08] Sam Chen: And the in-kind donation to the DAF?
[0:09] Sarah Chen: 556 shares transferred directly into the Clearwater Giving Fund at
$45 — $25,020 of donated value. You get a charitable deduction for $25,020. Zero
capital gain recognized on those shares. The deduction offsets your AGI directly. Of
the remaining 2,111 shares: we sold 1,800 to diversify — proceeds of $81,000 into the
portfolio. We retained 311 shares in ACCT-TAXABLE, which have a cost basis of $45.
[0:13] Alex Chen: The 1,800 shares we sold — was there a capital gain on those?
[0:14] Sarah Chen: Good question. The shares vested and were sold the same day, so
the basis equals the vest price — $45. No capital gain on the sale itself. The
$120,015 is all ordinary W-2 income. However, we also had $6,750 of long-term capital
gains from routine rebalancing earlier in the year. The $15,500 TLH carryforward from
2022 offsets those gains completely, and then some — so net capital gains for 2023
are effectively zero.
[0:17] Sam Chen: So the carryforward worked exactly as planned.
[0:18] Sarah Chen: Perfectly. Your net tax picture for 2023: W-2 income around
$390,000 including salary and the NLTK event, minus the $25,020 DAF deduction, minus
other itemized deductions — net AGI approximately $426,000. That's high, but
meaningfully lower than the $450,000+ it would have been without these strategies.

[0:21] Alex Chen: NLTK concentration — where does it stand now?
[0:22] Sarah Chen: With the sale of 1,800 shares and the donation of 556, the
remaining 311 shares at $45 represent about $14,000 of NLTK exposure. Total portfolio
is over a million. Concentration is under 1.5% — the lowest it's been since the RSU
program started. That chapter is effectively closed from a concentration-risk
standpoint. There will be one more modest vest in Q3 2024, and then the RSU program
is fully complete.
[0:25] Sam Chen: That's a relief, honestly. The concentration question has been
in the back of our minds for years.
[0:26] Sarah Chen: I understand. It took disciplined systematic selling and the right
opportunity in April to get there. The DAF also gave us a way to give meaningfully —
$25,020 available to grant. Have you thought about which organizations you'd like to
support?
[0:27] Alex Chen: The school foundation, definitely. The food bank. Maybe a local
arts organization.
[0:28] Sarah Chen: Let's make a grant schedule before year-end so we're doing it
intentionally rather than reactively. I'll reach out in October to finalize. Action
items: your CPA should receive a summary of the vest execution plan and DAF
contribution for TY2023 filing — I'll send that this week; DAF grant planning in Q4;
no estimated tax payment needed before September.
[0:30] Meeting adjourned
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ACTION ITEMS
1. Send vest execution summary and DAF contribution documentation to CPA — this
week
2. DAF grant schedule planning meeting — Q4 2023
3. No additional estimated tax payments needed before September 15
4. Monitor remaining NLTK position (311 shares) — hold, assess at Q3 meeting
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CONFIDENTIAL — For client use only. Not for distribution.
