CLEARWATER WEALTH PARTNERS
Client Meeting Transcript
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CLIENT: Chen Household (Sam & Alex Chen)
DATE: September 9, 2026
TIME: 2:00 PM
MEETING: 2026 Q3 Quarterly Review
LOCATION: Conference Room A, Clearwater Wealth Partners
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TRANSCRIPT
[0:00] Sarah Chen: Good afternoon. Portfolio is at $1,558,000 — up from the Q2
crossing of the $1.5M tier. Markets have been positive through Q3. The Maya 529
front-load is in progress — two of four quarterly contributions made. And I want to
use today to do a mid-year bucket strategy review, which I like to do formally twice
a year, and to start introducing the concept of sequence-of-returns risk as you get
closer to the retirement window.
[0:04] Alex Chen: The 529 — second contribution went through in August?
[0:05] Sarah Chen: Confirmed — $22,500 in June and $22,500 in August. Maya's 529 is
at $81,600 — a significant jump from the $33,800 we started the year with. Two more
contributions to go: Q4 2026 and Q1 2027. After that, the front-load is complete and
the account can grow on its own. At current projections, Maya will have
approximately $148,000 at matriculation in 2029.
[0:08] Sam Chen: That's a relief. Knowing that's handled.
[0:09] Sarah Chen: It's a major piece of mind for both of you and for Maya. Now —
the bucket strategy mid-year review. Bucket 1 is at $77,900 — 5% of AUM, exactly on
target. The money market yield is still solid at 4.3%. Bucket 2 at $514,100 — 33%.
Bucket 3 at $966,000 — 62%. All three buckets are within 1% of target. The
rebalancing trigger hasn't been hit.
[0:12] Alex Chen: Sequence-of-returns risk — I've seen that term but I don't
fully understand it.
[0:13] Sarah Chen: It's one of the most important concepts as you approach
retirement. Here's the core idea: if you retire and the market drops 30% in your
first two years of retirement, and you're drawing from the portfolio to fund living
expenses at the same time — you're selling assets at the lows, permanently reducing
the portfolio. That portfolio never fully recovers even if the market does, because
the shares you sold are gone.
[0:16] Sam Chen: And the bucket strategy protects against that?
[0:17] Sarah Chen: Exactly. With Bucket 1 funded, you draw from there in retirement —
not from equities. So if the market drops 30% in year one, you spend from cash and

short bonds. Bucket 3 stays intact, recovers over years 3 through 7, and by the time
you're drawing from it you're drawing near or at the recovery level.
[0:19] Alex Chen: How many years until this actually becomes a live planning
issue?
[0:20] Sarah Chen: Alex, you've said 62 to 64 is the target retirement window —
that's 8 to 10 years. In about 5 years, I'd want to have a transition plan in place:
when do you slow contributions, how do you handle the final working years, what does
the income bridge look like between retirement and Social Security claiming at 67.
We're not there yet, but I'm planting these seeds now so the decisions aren't rushed.
[0:23] Sam Chen: We appreciate the long lead time.
[0:24] Sarah Chen: It's one of the most valuable things we can offer — not surprises.
On the DAF: the 2026 grant schedule. We have approximately $8,500 in the Clearwater
Giving Fund from the April contribution. Same four organizations?
[0:26] Alex Chen: Same four — and maybe a slight increase to the environmental
organization. They did exceptional work this year.
[0:27] Sarah Chen: I'll set up: school foundation $3,000, food bank $2,500, arts
$2,000, environment $1,000. That's $8,500 total — fully distributes the fund. I'll
execute the grant recommendations in October.
[0:28] Sam Chen: Can we talk briefly about the referral — Taylor?
[0:29] Sarah Chen: Of course. Taylor is engaged and we've had three planning
meetings. Very similar planning values to you — disciplined, long-term oriented. I
can't share specifics, of course, but I can tell you it's a strong client
relationship developing. The referral was a gift.
[0:30] Sarah Chen: Action items: Maya 529 third contribution Q4 2026; DAF grants
processed in October; sequence-of-returns risk framework documented; retirement
transition planning introduced at 2026 annual review.
[0:30] Meeting adjourned
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ACTION ITEMS
1. Maya 529 third contribution $22,500 — Q4 2026 (fourth and final in Q1 2027)
2. Execute DAF grants: school $3,000, food bank $2,500, arts $2,000, environment
$1,000 — October
3. Document sequence-of-returns risk framework in client file — for annual review
discussion
4. Begin retirement transition planning timeline for December annual review
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CONFIDENTIAL — For client use only. Not for distribution.
