Watters Financial Services, LLC (WFS) provide wealth management, business retirement plan consulting and a one-time portfolio review to new clients. We are an independent firm not affiliated with any investment firm, bank, or insurance company. We do not sell investment products or insurance policies. We do not receive commissions; fees received come directly from the client. The combination of our independence and Fee-Only compensation enables us to give our clients advice that is more objective and unbiased. No one is influencing our recommendations. Being a Registered Investment Advisor (RIA), we are legally required to uphold a Fiduciary Standard of Care, which means we must always act in good faith and in the best interests of the client. As an RIA, we are required to provide full disclosure and transparency in the ADV Brochures Part 2A and 2B. All advice is provided by CERTIFIED FINANCIAL PLANNER™ Professionals (CFP®). The Certified Financial Planner Board of Standards, Inc. establishes and enforces the fiduciary standards, ethics, examination, experience, and ongoing education requirements of Financial Planners with CFP® certificates. Non-fiduciary advisers are only required to provide advice or sell products that they deem "suitable" to the client. Those products and recommendations may not be the best or most cost effective for the client's financial situation or goals. For over 35 years, our mission has been to deliver customized plans, superior personalized service, expertise and advice designed to reduce risk, grow wealth, protect assets, and manage income and taxes. We are organized as a limited liability company (LLC) under the laws of the State of New Jersey. Timothy J. Watters is a Member and Chief Compliance Officer, and Colin R. Watters is a Owner and Client Advisor of WFS. As used in this brochure, "WFS", "we", "our" and "us" refer to Watters Financial Services, LLC and the words "you", "your" and "client" refer to a client or prospective client of our firm. An Associated Person refers to an employee of the firm. Types of Advisory Services Wealth Management A combination of Investment Management and Financial Planning. Review meetings and extent of Financial Planning services is based on the assets under management. Portfolio Review Test the Watters. Get to know us with a one-time portfolio review for new clients. Retirement Plan Consulting to Business Owners Services regarding Retirement Plans, ERISA, 401(k), and Pension Plans. Wealth Management (for Clients with $500,000 or more in assets under management, AUM) AUM Number of Review Meetings $500,000 and above Usually Quarterly following a Client Roadmap and follow-up letters Wealth Management is a comprehensive investment advisory service that bundles together portfolio management and financial planning components for one advisory fee. Wealth Management is a structured process which includes: (1) Discovery Meeting, (2) Ongoing Comprehensive Financial Planning and Client Engagement Road Map, (3) Goal-Based Reporting (investment benchmark, risk and returns, rebalancing), and (4) Periodic meetings which are usually quarterly. Follow up letters and/or e- mails are sent to clients after each review meeting summarizing what was discussed, recommendations, and next actions. Wealth Management is an eight-step process. Step 1. Establishing and defining the client-planner relationship. Step 2. Gathering client data. We construct a personal profile identifying your goals, time horizon, liquidity needs, risk tolerance, resources, cash flow, and income requirements. This information also serves as the foundation for the Client Engagement Road Map used to structure the ongoing comprehensive financial planning. The client prioritizes the sequence of issues that will be addressed over the next two years. These topics may include:
• Retirement Planning; 401(k), IRA, ROTH IRA, Pension Plans, Retirement Funding, and Income Disbursement.
• Wealth Transfer and Estate Planning; Wills, Trusts, Power of Attorney, Health Care Proxy, Living Will.
• Risk Management and Protection of Income; insurance for life, disability, homeowners, automobile, long term care, personal liability.
• Business Succession, Buy/Sell Agreements.
• Tax Analysis of Investments and Retirement Vehicles.
• Investment Planning (including portfolio design); i.e., asset allocation and portfolio management.
• College Funding, Debt Management, Cash Flow Analysis, and Budgeting. Step 3. Analyze and evaluate the client's current financial status. Step 4. Develop and present investment management and financial planning recommendations. Develop the Client Engagement Road Map outlining the structure of the comprehensive and ongoing financial planning. Note: We are an independent firm and do not sell investments or insurance. We are a Fee-Only firm and do not receive commissions, rebates, awards, finder's fees, or bonuses for recommending insurance policies or investment products. No one is influencing our recommendations. Step 5. Determine the optimal asset allocation and appropriate diversification of the investment portfolio. A diversified investment portfolio is designed to maximize returns while simultaneously managing risk. The client's risk tolerance and the risk within each of the assets are considered. Step 6. Implement the investment portfolio with either discretionary or non-discretionary trading authority. You will grant our firm either discretionary or non-discretionary trading authority to manage your account. Discretionary authorization will allow our firm to determine the specific securities, and the number of securities, to be purchased or sold for your account without your approval prior to each transaction. The trading authority you grant the firm is documented in the Investment Advisory Agreement, the applications you sign with TD Ameritrade (you initial the limited power of attorney authorizations) and the Investment Guidelines documenting the portfolio model chosen and lists any restricted positions to be held in your accounts. You may limit our discretionary authority, for example, limiting the types (fossil fuels, tobacco) of securities that can be purchased for your account. These guidelines and restrictions can be changed at any time with a new signed Investment Guidelines form. If you enter into a non-discretionary arrangement, we must obtain your approval prior to executing any transactions for your account. Step 7. Monitor investment performance and periodically rebalance the portfolio. The investment portfolio is monitored on an ongoing basis. Portfolios are rebalanced if the relative value of the investment changes enough to become inconsistent with the agreed upon asset allocation because of changes in the market or your financial circumstances. Account supervision is guided by the stated objectives of the client, i.e., growth, income, or growth and income. Clients are asked to notify us if there is ever any change in their financial situation or investment objectives. To summarize, Investment Management includes: 1. Developing investment strategies 2. Selecting investments 3. Executing trades (on a discretionary or non-discretionary trading authority) 4. Periodic performance reporting 5. Rebalancing 6. Reallocating portfolio due to changes in your portfolio model, economy, performance of fund managers and other factors 7. Tax loss harvesting Step 8. Monitor the progress of the comprehensive financial planning. The Client Engagement Road Map segments the issues and attaches a timetable to the strategic financial plan. Financial

Planning is a dynamic process and is monitored with review meetings. Most clients have meetings quarterly. Different financial strategic plans and/or products may be more appropriate and effective as circumstances change. Planning is affected by changes in the economy, political environment, stock market, tax laws, investment performance, health status, income, or other life event such as divorce, job loss, or death of a loved one. Wealth Management clients do not receive a single written financial planning document, as this service includes comprehensive and ongoing financial planning. Clients are provided a “Client Engagement Road Map" that breaks down the planning process into assignments or activities that are discussed and acted upon during the client's meetings which are usually quarterly. All meetings are followed up with an e-mail or letter summarizing what was discussed, recommendations, and next actions. Clients receive a call before the meeting to review the agenda for the meeting and may add or delete a topic depending on their preferences or an event that requires a discussion/solution. Wealth Management (for Clients with AUM below $500,000) We develop an Investment Portfolio with the optimal asset allocation and appropriate the client's risk tolerance, goals, and other considerations. A diversified investment portfolio is designed to maximize returns while simultaneously managing risk. The criteria for selection of investment vehicles, performance, and allocation of the various types of assets are monitored on an ongoing basis. We will supervise the client's portfolio and will make recommendations to revise the allocation as market factors and the client's needs dictate. Portfolios are rebalanced, on a discretionary or non-discretionary basis, if the relative value of the investment changes enough to become inconsistent with the agreed upon asset allocation. Clients may instruct the firm to refrain from investing in certain types of securities for example oil, fossil fuels or tobacco. These guidelines are documented, signed and can be changed at any time. To summarize, Investment Management includes 1. Developing investment strategies 2. Selecting investments 3. Executing trades (on a discretionary or non-discretionary trading authority) 4. Periodic performance reporting 5. Rebalancing 6. Reallocating portfolio due to changes in your portfolio model, economy, performance of fund managers and other factors 7. Tax loss harvesting Assets Under Management Number of Review Meetings $300,000 to $500,000 Two review meetings with follow-up letters Under $300,000 Annual meeting with follow-up letter Portfolio Review Test the Watters: Get to know us with a one-time portfolio review for new clients. This service provides another perspective on your existing investment portfolio. 401(k) assets, investment accounts and retirement accounts will be reviewed. After researching current holdings, risk tolerance, time horizon, goals, liquidity needs, resources, cash flow and income requirements, specific recommendations will be given to improve the portfolio. Retirement Plan Consulting to Business Owners We offer various levels of advisory and consulting services to employee benefit plan sponsors and fiduciaries. The services are designed to assist them in meeting their management obligations to participants under the Employee Retirement Income Securities Act ("ERISA"). We offer pension consulting services based upon the needs of the plan and the services requested. The consulting will be non-discretionary and advisory in nature. We will provide advice about asset classes and investment alternatives available for the plan. The plan sponsor or fiduciary shall have the final decision-making authority regarding the selection, retention, removal, and addition of investment options. We will not be involved in any way in the purchase or sale of these investments. Investments will be monitored periodically based on the procedures and timing intervals delineated by the client. We also provide periodic educational workshops designed for the plan participants. The nature of the topics to be covered will be determined by us and the plan sponsor under the guidelines established in ERISA Section 404(c). The educational workshops will NOT provide plan participants with individualized, tailored investment advice or asset allocation recommendations. We are not a fiduciary to the participants. The sponsor or fiduciary retains the sole responsibility to provide all notices to participants required under ERISA section 404(c)(5). Tailored Relationships We tailor investment advisory services to the individual needs of the client. Our clients are allowed to impose restrictions on the investments in their account. All limitations and restrictions placed on accounts must be presented to us in writing. Wrap Fee Programs A “wrap-fee” program is one that provides the client with advisory and brokerage execution services for an all-inclusive fee. The client is not charged separate fees for the respective components of the total service. We do not sponsor, manage or participate in a Wrap Fee Program. Fiduciary Statement We are fiduciaries under the Investment Advisers Act of 1940 and when we provide investment advice to you regarding your retirement plan account or individual retirement account, we are also fiduciaries within the meaning of Title I of the Employee Retirement Income Security Act, (“ERISA”) and/or the Internal Revenue Code, (“IRC”), as applicable, which are laws governing retirement accounts. We have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. We must take into consideration each client’s objectives and act in the best interests of the client. We are prohibited from engaging in any activity that is in conflict with the interests of the client. We have the following responsibilities when working with a client:
• To render impartial advice;
• To make appropriate recommendations based on the client’s needs, financial circumstances, and investment objectives;
• To exercise a high degree of care and diligence to ensure that information is presented in an accurate manner and not in a way to mislead;
• To have a reasonable basis, information, and understanding of the facts in order to provide appropriate recommendations and representations;
• Disclose any material conflict of interest in writing; and
• Treat clients fairly and equitably. Regulations prohibit us from:
• Employing any device, scheme, or artifice to defraud a client;
• Making any untrue statement of a material fact to a client or omitting to state a material fact when communicating with a client;
• Engaging in any act, practice, or course of business which operates or would operate as fraud or deceit upon a client; or
• Engaging in any manipulative act or practice with a client. We will act with competence, dignity, integrity, and in an ethical manner, when working with clients. We will use reasonable care and exercise independent professional judgement when conducting investment analysis, making investment recommendations, trading, promoting our services, and engaging in other professional activities. Assets Under Management As of January 1, 2023, we managed $82,731,064 on a discretionary basis and $69,481,203 on a non-discretionary basis for a total of $152,212,267. In addition, we also advised, on a limited scope fiduciary basis, approximately $29,340,560 of company 401(k) and 403(b) assets.