Williams Financial Services, LLC

Registered Investment Advisor

We believe our clients and potential clients have the right to know how our investment manager performs managing his own portfolio.  Since our firm invests for the long-term, we periodically engage the services of a CPA firm to compile his performance over a five-year period.  A copy of the CPA’s report is available to any client or potential client upon request. 

Annualized Compounded Returns  

Below is our portfolio manager’s compounded annualized return on investment for the five-year period ended December 31, 2007, as compared to the returns of several leading stock market indexes over the same period.  Individual performance may vary according to client’s risk tolerance, investment objectives, market conditions and underlying investments held in the portfolio.  The return below is net of 1.25% management fees, which is the highest rate of management fees our firm charges.  The actual management fees on an account with $1,000,000 invested would be .85%.

            WFS Portfolio Manager                                  17.81%

            S&P 500 Index                                                  10.78%

            Russell 2000 Index                                           14.86%

            Dow Jones Industrial Average                           9.72%

            NASDAQ                                                         14.70%

 The value of $1,000,000 invested for a five-year period with dividends and interest reinvested at a 17.81% compounded annual return would increase to $2,269,399.

 The graph below displays the growth of $1,000,000 compounded annually at our portfolio manager’s five-year average return rates as compared to the growth using the five-year return rates of the S&P 500 and a 4% CD.

Disclosures:

The above return was calculated on all of our portfolio manager’s investments held at brokerage companies that have readily ascertainable market values.

This performance has been attained through investments in common stocks, preferred stocks, closed-end mutual funds, real estate investment trusts, master limited partnerships, mutual funds, and money market funds all traded on the national exchanges.  At December 31, 2007, the largest holding represented less than 5% of his total holdings.

We present the annualized returns of leading stock market indexes for comparison purposes only.  Our portfolio manager’s investments were not intended to track these or any other indexes.

All income from dividends and interest was reinvested and thus included in the above stated returns.

It should not be assumed that future returns will equal the performance of the last five years.  There is a possibility that returns will be negative in the future.

For more information about our services, please contact us at dan@williamsfinancialservicesllc.com.