CLEARWATER WEALTH PARTNERS
Client Meeting Transcript
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CLIENT: Chen Household (Sam & Alex Chen)
DATE: June 12, 2024
TIME: 2:00 PM
MEETING: 2024 Q2 Quarterly Review
LOCATION: Conference Room A, Clearwater Wealth Partners
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TRANSCRIPT
[0:00] Sarah Chen: Good afternoon. Portfolio is at $1,237,000 — up about 3% from the
Q1 meeting. The S&P has been volatile in Q2 but still positive for the year. More
important news: the beneficiary correction on IRA1 is confirmed and documented. And I
want to use today to make sure the final NLTK vest plan is fully locked in for
September, and to start a conversation about pre-retirement framing that I think
you're ready to have.
[0:04] Alex Chen: The IRA beneficiary — confirmed?
[0:05] Sarah Chen: Confirmed. I have the custodian acknowledgment in your vault dated
March 22nd. IRA1 now correctly shows Sam as primary and the Chen Family Revocable
Trust as contingent. The RIRA was already correct from 2019. Full alignment across
all accounts now.
[0:07] Sam Chen: That's a relief.
[0:08] Sarah Chen: It should be. Now — the DAF contribution. I identified the right
position: we donated 110 shares of UECIY from ACCT-TAXABLE to the Clearwater Giving
Fund last week. Those shares had an average cost basis of $52 and a current value of
approximately $6,100. You get a $6,100 charitable deduction, and you never recognize
the $1,320 in unrealized gain on those shares. DAF balance is now $6,100 — ready to
distribute grants in Q4.
[0:12] Alex Chen: The final NLTK vest in September. What's the plan?
[0:13] Sarah Chen: Vest date is September 5th. 625 shares. NLTK is at $39 today. The
income at vest will be roughly $24,375. Protocol: sell 450 shares, retain 175. I'll
execute on the day of vest — no delay. After the sale, NLTK concentration will be
well under 1% of portfolio. And then we're done. No more vest events after September.
[0:15] Sam Chen: What happens to the 175 shares we hold?
[0:16] Sarah Chen: They sit in ACCT-TAXABLE with a cost basis of whatever the vest
price is. You can sell them at any time — they become a long-term capital gain
position after one year. Given the concentration is negligible, there's no pressure
to sell them quickly. Some clients like to hold a small position as a connection to
their career. Up to you.

[0:18] Alex Chen: Let's hold them. It feels right to keep a small amount.
[0:19] Sarah Chen: Understood. We'll keep 175 shares, indefinitely, unless something
changes at NLTK that concerns us. Now — the pre-retirement conversation. I want to
introduce a framework: the bucket strategy. With approximately 9 to 10 years to your
target retirement window, it's time to start thinking about income replacement
rather than just accumulation.
[0:22] Sam Chen: What is the bucket strategy exactly?
[0:23] Sarah Chen: Instead of a single portfolio with one allocation, you organize
assets into time-segmented buckets. Bucket 1 covers 0 to 24 months of spending — kept
in cash and short-duration bonds, so you always have near-term income covered without
selling equities. Bucket 2 covers 2 to 7 years — intermediate bonds and TIPS. Bucket
3 is equities for 7-plus years of long-term growth. In a bad market year, you spend
from Bucket 1 — you never have to sell equities at a loss to fund living expenses.
[0:27] Alex Chen: That would have helped mentally in 2022.
[0:28] Sarah Chen: Exactly — it's as much psychological as mathematical. The
allocations themselves are similar to what we have today; the framing changes the
experience. I want to formalize this as an IPS amendment in Q1 2025. For now, it's a
concept I'd like you to think about. Action items: NLTK final vest execution
September 5th; DAF grant schedule finalized in Q4; begin thinking about bucket
strategy parameters; POA and health directives from attorney — confirm receipt by
June 30.
[0:30] Meeting adjourned
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ACTION ITEMS
1. Execute final NLTK vest September 5 — sell 450 shares, hold 175 per protocol
2. DAF grant schedule for $6,100 balance — finalize in Q4 2024
3. Begin bucket strategy planning for Q1 2025 IPS amendment discussion
4. Confirm receipt of updated POA and health directives from estate attorney — by
June 30
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CONFIDENTIAL — For client use only. Not for distribution.
