NEWPORT WEALTH ADVISORS, INC.

Part 2A of Form ADV: Firm Brochure Item 1: Cover Page Newport Wealth Advisors Inc. (CRD #137159) 4695 MacArthur Court, Suite 1100 Newport Beach, CA 92660 Phone: 877- 692-7227 Fax: 760 - 621-7006 Website - WWW.NEWPORTWEALTHADVISORS.COM Email: newportwealthadvisors@newportwealthadvisors.com September 2025 This brochure provides information about the qualifications and business practices of Newport Wealth Advisors. If you have any questions about the contents of this brochure, please contact us at: 877-692-7227 , or by email at: ldepaul@newportwealthadvisors.com. The information in this brochure has not been approved or verified by United States Securities and Exchange Commission or by any state securities authority. Additional information about Newport Wealth Advisors Inc. is available on the SEC’s website at www.adviserinfo.sec.gov All registered persons that are members of Newport Wealth Advisors Inc. are investment advisor representatives. This title does not imply any certain level of skill or training other than passing the necessary licensing exams and being within compliance according to the United States Securities and Exchange Commission. 1  Item 2: Material Changes This Item discusses material changes that are made to our Brochure and provides a summary of those changes. We will also reference the date of the last annual update of our Brochure. Since our last annual update was filed in March 2025, there have been no material changes to this brochure. Full Brochure Available Whenever you would like to receive a complete copy of our Firm Brochure, please contact us by telephone at: 877-692-7227 or by email at: newportwealthadvisors@newportwealthadvisors.com 2  Item 3- Table of Contents Item 4-Advisory Business ....................................................................................................................... 4 Item 5-Fees and Compensation ............................................................................................................... 9 Item- 6 Performance Based Fees ........................................................................................................... 11 Item 7-Types of Clients ........................................................................................................................ 12 Item 8-Methods of Analysis, Investment Strategies and Risk of Loss .................................................. 13 Item 9-Legal and Disciplinary .............................................................................................................. 18 Item 10-Other Financial Industry Activities and Affiliations ............................................................... 18 Item 11-Code of Ethics, Participation or Interest in Client Transactions and Personal Trading ........... 19 Item 12-Brokerage Practices ................................................................................................................. 20 Item 13-Review of Accounts ................................................................................................................ 21 Item 14-Client Referrals and Other Compensation ............................................................................... 22 Item 15-Custody ................................................................................................................................... 22 Item 16-Investment Discretion.............................................................................................................. 23 Item 17-Voting Client Securities .......................................................................................................... 24 Item 18-Financial Information .............................................................................................................. 24 3  Item 4-Advisory Business A) Firm Description Newport Wealth Advisors, Inc., hereinafter (“Newport Wealth Advisors”) is a corporation formed under the laws of California and was founded in 2005 and is a Securities and Exchange Commission (“SEC”) registered investment adviser There are two owners each owning an equal share of 50%: L. Michael Depaul and Surya J. Metzler B) Services Offered Newport Wealth Advisors, Inc. offers personalized investment advisory services to individuals, pension and profit sharing plans, trusts, estates, charitable organizations, corporations, and other business entities. This narrative provides clients with information regarding Newport Wealth Advisors and the qualifications, business practices, and nature of advisory services that should be considered before becoming an advisory client of Newport Wealth Advisors. Individuals associated with Newport Wealth Advisors will provide its investment advisory services. These individuals are appropriately licensed, qualified, or authorized to provide advisory services on behalf of Newport Wealth Advisors. Such individuals are known as Investment Adviser Representatives. Newport Wealth Advisors provides two primary financial advisory services: 1) investment management services, and 2) personal financial planning. Each of these two services may be billed separately as unique services, or, in most cases for ongoing clients, billings for both services are integrated, as described below. Some clients may use the Adviser only for the financial planning; others may choose to use the Adviser only for investment management services. Most clients use both of these options. The Adviser is a fee-only investment management and financial planning firm. The firm does not sell securities on a commission basis. However, there may be investment advisors who are registered representatives of a Broker Dealer and receive commissions as compensation. The Advisor and said Broker Dealer are not affiliated and are completely separate entities. The investment management services are provided through separately managed accounts for each client The Adviser does not act as a custodian of client assets, and the client always maintains asset control. The Adviser has discretion of client accounts and places trades for clients under a limited power of attorney. Other professionals (e.g., lawyers, accountants, insurance agents, etc.) are engaged directly by the client on an as-needed basis. Any conflicts of interest arising out of the Adviser’s or its associated persons are disclosed in this brochure. Newport Wealth Advisors provides investment supervisory services, also known as asset management services and furnishes investment advice through consultations. On 4  more than an occasional basis, Newport Wealth Advisors furnishes advice to clients on matters not involving securities. Portfolio Management Services Newport Wealth Advisors offers discretionary and non-discretionary continuous portfolio management services where the investment advice provided is tailored to meet the needs and investment objectives of the client. The Firm offers an initial consultation in which pertinent information about the client’s personal and financial circumstances and objectives is collected, and the scope of the engagement is determined. Where Newport Wealth Advisors enters into discretionary arrangements with clients, Newport Wealth Advisors will be granted discretion and authority to manage the client’s account subject to any written guidelines that the client may provide. Accordingly, Newport Wealth Advisors is authorized to perform various functions, at the client’s expense, without further approval from the client. Such functions may include the determination of securities and the amount of securities to be purchased and/or sold. Once the portfolio is constructed, Newport Wealth Advisors provides ongoing supervision and rebalancing of the portfolio as changes in market conditions and client circumstances may require. For non-discretionary portfolio management services, Newport Wealth Advisors will monitor the client’s assets and will provide recommendations as to the client’s asset allocation. The client is free at all times to accept or reject any investment recommendation from Newport Wealth Advisors. For non-discretionary portfolio management, Newport Wealth Advisors will implement recommendations upon obtaining client approval. Financial Planning Services Newport Wealth Advisors engages in financial planning services for a fee. Financial planning and consulting will typically involve providing a variety of services, principally advisory in nature, to clients regarding the management of their financial resources based upon an analysis of their individual needs. An Investment Adviser Representative of Newport Wealth Advisors will first conduct an initial consultation. After the initial consultation, if the client decides to engage Newport Wealth Advisors for financial planning services, an Investment Adviser Representative will conduct follow up meetings as necessary, during which pertinent information about the client’s financial circumstances and objectives is collected. Once such information has been 5  reviewed and analyzed, a financial plan – designed to achieve the client’s stated financial goals and objectives – may be presented to the client. Clients may act on the Firm’s recommendations by placing securities transactions with any brokerage firm the client chooses. The client is under no obligation to act on the Firm’s financial planning recommendations. Moreover, if the client elects to act on any of the recommendations, the client is under no obligation to implement the financial plan through Newport Wealth Advisors. Financial plans are based on the client’s financial situation at the time the plan is presented and on financial information disclosed by the client to Newport Wealth Advisors. Clients are advised that certain assumptions may be made with respect to interest and inflation rates and use of past trends and performance of the market and economy. Past performance is in no way an indication of future performance. Newport Wealth Advisors cannot offer any guarantees or promises that the client’s financial goals and objectives will be met. As the client’s financial situation, goals, objectives, or needs change, the client must notify Newport Wealth Advisors promptly. IRA Rollover Recommendations Effective December 20, 2021 (or such later date as the US Department of Labor ("DOL") Field Assistance Bulletin 2018-02 ceases to be in effect), for purposes of complying with the DOL's Prohibited Transaction Exemption 2020-02 ("PTE 2020- 02") where applicable, we are providing the following acknowledgment to you. When we provide investment advice to you regarding your retirement plan account or individual retirement account, we are fiduciaries within the meaning of Title I of the Employee Retirement Income Security Act and/or the Internal Revenue Code, as applicable, which are laws governing retirement accounts. The way we make money creates some conflicts with your interests, so we operate under a special rule that requires us to act in your best interest and not put our interest ahead of yours. Under this special rule's provisions, we must: • Meet a professional standard of care when making investment recommendations (give prudent advice); • Never put our financial interests ahead of yours when making recommendations (give loyal advice); • Avoid misleading statements about conflicts of interest, fees, and investments; • Follow policies and procedures designed to ensure that we give advice that is in your best interest; • Charge no more than is reasonable for our services; and • Give you basic information about conflicts of interest. As of December 31, 2024 Newport Wealth Advisors manages approximately $193,260,000 in assets. All such assets are managed on a discretionary basis. 6  Assignment of Investment Management Agreements Agreements may not be assigned without client consent. Types of Agreements The following agreements define the typical client relationships. Investment Management Agreement As part of the investment management service, all aspects of the client’s financial affairs are reviewed and realistic and measurable goals are set and objectives to reach those goals are defined. As goals and objectives change over time, suggestions are made and implemented on an ongoing basis. The Adviser periodically reviews a client’s financial situation and portfolio through regular contact with the client which often includes an annual meeting with the client. The Adviser makes use of portfolio rebalancing software to maintain client allocations according to the Investment Policy Statement in effect. The scope of work and fee for an Advisory Service Agreement is provided to the client in writing prior to the start of the relationship. The agreement sets forth the services to be provided, the fees for the service and the agreement may be terminated by either party in writing at any time. Financial Planning Agreement The financial plan may include, but is not limited to: a net worth statement; a cash flow statement; a review of investment accounts, including reviewing asset allocation and providing repositioning recommendations; strategic tax planning; a review of retirement accounts and plans including recommendations; a review of insurance policies and recommendations for changes, if necessary; one or more retirement scenarios; estate planning review and recommendations; and education planning with funding recommendations. The financial planning may be the only service provided to the client and does not require that the client use or purchase the investment advisory services offered by the Advisor or any of the insurance products or other products and services offered by the associated persons of the Advisor. There is an inherent conflict of interest for the Advisor whenever a financial plan recommends use of professional investment management services or the purchase of insurance products or other financial products or services. The Advisor or its associated persons may receive compensation for financial planning and the provision of investment management services and/or the sale of insurance and other products and services. The Advisor does not make any representation that these products and services are offered at the lowest available cost and the client may be able to obtain the same products or services at a lower cost from other providers. However, the client is under no obligation to accept any of the recommendations of the Advisor or use the services of the Advisor in particular. 7  Hourly Engagements The Adviser provides hourly services for clients who need advice on a limited scope of work. Asset Management Investments may include: equities (stocks), warrants, corporate debt securities, commercial paper, certificates of deposit, municipal securities, investment company securities (variable life insurance, variable annuities, and mutual funds shares), U. S. government securities, options contracts, futures contracts, and interests in partnerships. Newport Wealth Advisors reserves the right to advise clients on any other types of investments deemed appropriate based on the client’s stated goals and objectives. The Firm may also provide advice on other types of investment held in a client’s portfolio at the inception of the advisory relationship or on investments for which the client requests advice. Stocks and bonds may be purchased or sold through a brokerage account when appropriate. The brokerage firm charges a fee for stock and bond trades. Newport Wealth Advisors does not receive any compensation, in any form, from fund companies. Selection of Third Party Advisers and Sub Advisers Newport Wealth Advisors may recommend that clients utilize the services of a third party investment adviser (“TPA”) to manage a portion of, or their entire portfolio. All TPAs that the Firm recommends to its clients must either be registered as investment advisers with the Securities and Exchange Commission or with the appropriate state authority(ies). After gathering information about the client’s financial situation and objectives, an investment adviser representative of Newport Wealth Advisors will make recommendations regarding the suitability of a TPA or investment style based on, but not limited to, the client’s financial needs, investment goals, tolerance for risk, and investment objectives. Upon selection of a TPA(s), Newport Wealth Advisors will monitor the performance of the TPA(s) to ensure their performance and investment style remains aligned with the investment goals and objectives of the client. Newport Wealth Advisors may share in the fee paid by the client to the TPA. Clients who are referred to TPAs will receive full disclosure, including services rendered and fee schedules, at the time of the referral by delivery of a copy of the relevant TPA’s Form ADV Part 2 or equivalent disclosure document. In addition, if the investment program recommended to a client is a wrap fee program, the client will also receive the 8  Schedule H or equivalent wrap fee account size, minimum fees, or other portfolio conditions as outlined in their disclosure statements. The Firm or the TPA will provide to each client all appropriate disclosure statements, including disclosure of solicitation fees paid to Newport Wealth Advisors and its investment adviser representatives. Fees paid by the client to the TPA are established and payable in accordance with the Form ADV Part 2 or other equivalent disclosure document provided by each TPA to whom the client is referred and these fees may or may not be negotiable. Such compensation may differ depending upon the Firm’s individual agreement with each TPA. As such, Newport Wealth Advisors or its investment adviser representatives may have an incentive to recommend one TPA over another TPA with whom it has less favorable compensation arrangements or other advisory programs offered by TPAs with which it has no compensation arrangements. Clients may be required to sign an agreement directly with the TPA(s) selected. The client, the Firm, or the TPA, in accordance with the provisions of those agreements, may terminate the advisory relationship. If the TPA is compensated in advance, the client will typically receive a pro rata refund of any prepaid advisory fees upon termination of an advisory agreement. Termination of Agreement A Client may terminate any of the aforementioned agreements at any time by notifying the Adviser in writing. Clients shall be charged pro rata for services provided through to the date of termination. If the client made an advance payment, the Adviser will refund any unearned portion of the advance payment. The Adviser may terminate any of the aforementioned agreements at any time by notifying the client in writing. If the client made an advance payment, the Adviser will refund any unearned portion of the advance payment. The Adviser reserves the right to terminate any financial planning engagement where a client has willfully concealed or has refused to provide pertinent information about financial situations when necessary and appropriate, in the Adviser’s judgment, to providing proper financial advice. Any unused portion of fees collected in advance will be refunded. Item 5-Fees and Compensation Investment Management Newport Wealth Advisors bases its fees on a percentage of assets under management. Although the Investment Management Agreement is an ongoing agreement and constant adjustments are required, the length of service to the client is at the client’s discretion. The client or the investment manager may terminate an Agreement by written notice to the other party. At termination, fees will be billed on a pro rata basis for the portion of the quarter completed. The portfolio value at the completion of the prior full billing quarter is used as the basis for the fee computation, adjusted for the number of days during the billing quarter prior to termination. 9  The annual fee for portfolio management services for accounts is billed quarterly in advance based on the asset value on the last business day of the previous quarter or billed quarterly in arrears based on the asset value on the last business day of the quarter, respectively. Fees will be assessed pro rata in the event the portfolio management agreement is executed at any time other than the first day of a calendar quarter. Portfolio management fees may be negotiable depending on factors such as the amount of assets under management, range of investments, and complexity of the client’s financial circumstances, among others. The annualized negotiable fee for discretionary and non-discretionary portfolio management services are based on the following fee schedule: Managed Assets Moderate Aggressiv e Conservativ e Moderatel y Aggressive Moderately Conservativ e <250,000 1.50% 1.45% 1.40% 1.35% 1.30% 250,000 - < 500,000 1.35% 1.30% 1.25% 1.20% 1.15% 1.20% 1.15% 1.10% 1.05% 1.00% 1.05% 1.00% 1.00% 0.95% 0.90% 0.85% 0.80% 0.75% 0.75% 0.70% 500,000 - < 1,000,000 1,000,000 - < 2,500,000 2,500,000 - < 5,000,000 Over 5,000,000 Negotiable Negotiable Negotiable Negotiable Negotiabl e One exception to the above schedule is when the client selects an account with a performance fee. The annual advisory fee for the program ranges from 1.00% to 2.00%. Variable Annuity Asset Allocation Newport Wealth Advisors also provides Variable Annuity Asset Allocation services for Variable Annuity contracts issued by numerous Insurance Companies. The annualized negotiable fee for discretionary and non-discretionary Variable Annuity Asset Allocation services are based on the following fee schedule: VaR Allocation Series 1.25% RWA Multi-Strategy Allocation 1.50% Payment of the Firm’s management fees will be made by the qualified custodian holding the client’s funds and securities provided the client supplies written authorization permitting the fees to be paid directly from the account. Financial Planning Newport Wealth Advisors charges a fee for financial planning services due upon agreement of engagement. Financial planning fees are based on the scope and complexity of the plan, the client’s situation, and/or the client’s objectives. Financial 10  Planning fees are fully refundable for the 90 days following the delivery of the financial plan to the client represented by the dated signature of the client. The Fee Schedule is as follows: Newport Wealth Advisors Case Complexity Model  Combined income exceeding $250,000  One or more business owners  Investible assets exceeding $1,000,000  Rental or Commercial Real Estate owners  Need complex estate planning (Net worth exceeds Federal and State Estate Tax Exemption) Simple Case Moderate Case Complex Case None of the above Complexity Criteria Up to 2 of the above Complexity Criteria 3 or more of the above Complexity Criteria Fee range - $500 - $999 Fee range - $1,000 - $1,499 Fee Range - $1,500 - $5,000 Item- 6 Performance Based Fees Performance Fees Newport Wealth Advisors’ does not offer any performance fee options Other Fees Unless the client portfolio account is in a wrap program, the client will likely incur fees from brokerages, custodians, administrators and other service providers. These fees are incurred as a result of managing a client account and are charged by the service provider. The amount and nature of these fees is based on the service provider’s fee schedule(s) at the provider’s sole discretion. These fees are separate and distinct from any fees charged by the Adviser. The Adviser or the sub-advisors selected by the Adviser may include mutual funds, variable annuity products, ETFs, and other managed products or partnerships in clients’ portfolios. Clients may be charged for the services by the providers/managers of these products in addition to the management fee paid to the Adviser. The Adviser, from time to time, may select or recommend to separately managed clients the purchase of proprietary investment products. To the extent the client’s separately managed portfolio includes such proprietary products, the Adviser will adjust the client’s fee associated with the client’s separately managed account. The fees and expenses 11  charged by the product providers are separate and distinct from the management fee charged by the Adviser. These fees and expenses are described in each mutual fund’s or underlying annuity fund’s prospectus or in the offering memorandums of a partnership. These fees will generally include a management fee, other fund expenses and a possible distribution fee. No-load or load waived mutual funds may be used in client portfolios so there would be no initial or deferred sales charges; however, if a fund that imposes sales charges is selected, a client may pay an initial or deferred sales charge. A client could invest in a mutual fund or variable annuity or investment partnership directly, without the services of the Adviser. Accordingly, the client should review both the fees charged by the funds and the applicable program fee charged by the Advisor to fully understand the total amount of fees to be paid by the client and to thereby evaluate the advisory services being provided. If it is determined that a client portfolio shall contain corporate debt or other types of over the counter securities, the client may pay a mark-up or mark-down or a “spread” to the broker or dealer on the other side of the transaction that is built into the purchase price of the security. In some cases there may be fees charged which are a result of brokered trading activity by associated personnel of the Adviser that is outside of the constructs of the Adviser’s investment advisory portfolios and are thus not included in the management fee. These trades are generally at the request of the client the fees may vary in size depending on the nature of the client’s requests. Conflict of Interest between Different Fee Structures The Adviser offers several different services detailed in this brochure that compensate the Adviser differently depending on the service selected. There is a conflict of interest for the Adviser and its associated personnel to recommend the services that offer a higher level of compensation to the Firm through either higher management fees or reduced administrative expenses. The Adviser mitigates this conflict through its procedures to review client accounts relative to the client or investors personal financial situation to ensure the investment management service provided is appropriate. Further, the Adviser is committed to its obligation to ensure associated persons adhere to the Firm’s Code of Ethics and to ensure that the Firm and its associated persons fulfill their fiduciary duty to clients or investors. Item 7-Types of Clients Description Newport Wealth Advisors generally provides investment advice to individuals, pension and profit sharing plans, trusts, estates, and corporations or business entities. Client relationships vary in scope and length of service. 12  Account Minimums Generally, Newport Wealth Advisors requires an account minimum of $250,000 for asset management services. However, in its sole discretion, Newport Wealth Advisors may waive or lower this minimum. For the performance fee-based account option there is a minimum investment of $1,000,000 for this type of account. The Client must also have a net worth (excluding primary residence of least $2,000,000. Item 8-Methods of Analysis, Investment Strategies and Risk of Loss Methods of Analysis Security analysis methods may include charting, fundamental analysis, and technical analysis. The main sources of information include financial newspapers and magazines, research materials prepared by others, corporate rating services, timing services, annual reports, prospectuses, filings with the Securities and Exchange Commission, and company press releases. Investment Strategies Strategies may include long-term purchases, short-term purchases, trading, short sales, and option writing (including covered options, uncovered options or spreading strategies). Newport Wealth Advisors strives to build portfolios that are globally diversified to control the risk associated with traditional markets. The investment strategy for a specific client is based upon the objectives stated by the client during consultations. The investment strategy for a specific client is based upon the objectives stated by the client during consultations. The client may change these objectives at any time. Each client executes an Investment Policy Statement that documents their objectives and their desired investment strategy. The Adviser’s strategies do not involve frequent trading. Market, Security and Regulatory Risks Any investment with the Adviser involves significant risk, including a complete loss of capital and conflicts of interest. All investment programs have certain risks that are borne by the investor which are described below: Market Risks: Competition: The securities industry and the varied strategies and techniques to be engaged in by the Adviser are extremely competitive and each involves a degree of risk. The Adviser will compete with firms, including many of the larger securities and investment banking firms, which have substantially greater financial resources and research staffs. 13  Market Volatility: The profitability of the Adviser substantially depends upon it correctly assessing the future price movements of stocks, bonds, options on stocks, and other securities and the movements of interest rates. The Adviser cannot guarantee that it will be successful in accurately predicting price and interest rate movements. Newport Wealth Advisors Inc Investment Activities: The Adviser’s investment activities involve a significant degree of risk. The performance of any investment is subject to numerous factors which are neither within the control of nor predictable by the Adviser. Such factors include a wide range of economic, political, competitive, technological and other conditions (including acts of terrorism and war) that may affect investments in general or specific industries or companies. The securities markets may be volatile, which may adversely affect the ability of the Adviser to realize profits. Material Non-Public Information: By reason of their responsibilities in connection with other activities of the Adviser and/or its affiliates, certain principals or employees of the Adviser and/or its affiliates may acquire confidential or material non-public information or be restricted from initiating transactions in certain securities. The Adviser will not be free to act upon any such information. Due to these restrictions, the Adviser may not be able to initiate a transaction that it otherwise might have initiated and may not be able to sell an investment that it otherwise might have sold. Accuracy of Public Information: The Adviser selects investments, in part, on the basis of information and data filed by issuers with various government regulators or made directly available to the Adviser by the issuers or through sources other than the issuers. Although the Adviser evaluates all such information and data and sometimes seeks independent corroboration when it’s considered appropriate and reasonably available, the Adviser is not in a position to confirm the completeness, genuineness or accuracy of such information and data, and in some cases, complete and accurate information is not available. Investments in Undervalued Securities: The Adviser intends to invest in undervalued securities. The identification of investment opportunities in undervalued securities is a difficult task, and there are no assurances that such opportunities will be successfully recognized or acquired. While investments in undervalued securities offer the opportunities for above-average capital appreciation, these investments involve a high degree of financial risk and can result in substantial losses. Returns generated from the Adviser’s investments may not adequately compensate for the business and financial risks assumed. Small Companies: The Adviser may invest a portion of its assets in small and/or unseasoned companies with small market capitalization. While smaller companies generally have potential for rapid growth, they often involve higher risks because they may lack the management experience, financial resources, product diversification and competitive strength of larger companies. In addition, in many instances, the frequency and volume of their trading may be substantially less than is typical of larger 14  companies. As a result, the securities of smaller companies may be subject to wider price fluctuations. Leverage: When deemed appropriate by the Adviser and subject to applicable regulations, the Adviser may incur leverage in its investment program, whether directly through the use of borrowed funds, or indirectly through investment in certain types of financial instruments with inherent leverage, such as puts, calls and warrants, which may be purchased for a fraction of the price of the underlying securities while giving the purchaser the full benefit of movement in the market of those underlying securities. While such strategies and techniques increase the opportunity to achieve higher returns on the amounts invested, they also increase the risk of loss. Options and Other Derivative Instruments: The Adviser may invest, from time to time, in options and other derivative instruments, including, but not limited to, the buying and selling of puts and calls on some of the securities held by the Adviser. The prices of many derivative instruments, including many options and swaps, are highly volatile. The values of options and swap agreements depend primarily upon the price of the securities, indexes, commodities, currencies or other instruments underlying them. Price movements of options contracts and payments pursuant to swap agreements are also influenced by, among other things, interest rates, changing supply and demand relationships, trade, fiscal, monetary and exchange control programs and policies of governments, and national and international political and economic events and policies. Options on highly volatile securities, currencies or other assets may be more expensive than options on other investments. Market or Interest Rate Risk: The price of most fixed income securities move in the opposite direction of the change in interest rates. For example, as interest rates rise, the price of fixed income securities falls. If the Adviser holds a fixed income security to maturity, the change in its price before maturity may have little impact on the Adviser’s performance; however, if the Adviser has to sell the fixed income security before the maturity date, an increase in interest rates could result in a loss to the Adviser. Fixed Income Call Option Risk: Many bonds, including agency, corporate and municipal bonds, and all mortgage-backed securities, contain a provision that allows the issuer to “call” all or part of the issue before the bond’s maturity date. The issuer usually retains this right to refinance the bond in the future if market interest rates decline below the coupon rate. There are three disadvantages to the call provision. First, the cash flow pattern of a callable bond is not known with certainty. Second, because the issuer will call the bonds when interest rates have dropped, the Adviser is exposed to reinvestment rate risk – the Adviser will have to reinvest the proceeds received when the bond is called at lower interest rates. Finally, the capital appreciation potential of a bond will be reduced because the price of a callable bond may not rise much above the price at which the issuer may call the bond. 15  Inflation Risk: Inflation risk results from the variation in the value of cash flows from a security due to inflation, as measured in terms of purchasing power. For example, if the Adviser purchases a 5-year bond in which it can realize a coupon rate of 5%, but the rate of inflation is 6%, then the purchasing power of the cash flow has declined. For all but inflation-linked bonds, adjustable bonds or floating rate bonds, the Adviser is exposed to inflation risk because the interest rate the issuer promises to make is fixed for the life of the security. Investments in Non-U.S. Investments: From time to time, the Adviser may invest and trade a portion of its assets in non-U.S. securities and other assets (through ADRs and otherwise), which will give rise to risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuers and markets are subject. Such risks may include:  Political or social instability, the seizure by foreign governments of company assets, acts of war or terrorism, withholding taxes on dividends and interest, high or confiscatory tax levels, and limitations on the use or transfer of portfolio assets.  Enforcing legal rights in some foreign countries is difficult, costly and slow, and there are sometimes special problems enforcing claims against foreign governments.  Foreign securities and other assets often trade in currencies other than the U.S. dollar, and the Adviser may directly hold foreign currencies and purchase and sell foreign currencies through Newport Wealth Advisors exchange contracts. Changes in currency exchange rates will affect the Adviser’s net asset value, the value of dividends and interest earned, and gains and losses realized on the sale of investments. An increase in the strength of the U.S. dollar relative to these other currencies may cause the value of the Adviser’s investments to decline. Some foreign currencies are particularly volatile. Foreign governments may intervene in the currency markets, causing a decline in value or liquidity of the Adviser’s foreign currency holdings. If the Adviser enters into Newport Wealth Advisors foreign currency exchange contracts for hedging purposes, it may lose the benefits of advantageous changes in exchange rates. On the other hand, if the Adviser enters Newport Wealth Advisors contracts for the purpose of increasing return, it may sustain losses.  Non-U.S. securities, commodities and other markets may be less liquid, more volatile and less closely supervised by the government than in the United States. Foreign countries often lack uniform accounting, auditing and financial reporting standards, and there may be less public information about the operations of issuers in such markets. Risk of Default or Bankruptcy of Third Parties: The Adviser may engage in transactions in securities, commodities, other financial instruments and other assets that 16  involve counterparties. Under certain conditions, the Adviser could suffer losses if a counterparty to a transaction were to default or if the market for certain securities, commodities, other financial instruments and/or other assets were to become illiquid. Regulatory Risks: Strategy Restrictions: Certain institutions may be restricted from directly utilizing investment strategies of the type in which the Adviser may engage. Such institutions, including entities subject to ERISA, should consult their own advisors, counsel and accountants to determine what restrictions may apply and whether an investment in the Adviser is appropriate. Trading Limitations: For all securities, instruments and/or assets listed on an exchange, including options listed on a public exchange, the exchange generally has the right to suspend or limit trading under certain circumstances. Such suspensions or limits could render certain strategies difficult to complete or continue and subject the Adviser to loss. Also, such a suspension could render it impossible for the Adviser to liquidate positions and thereby expose the Adviser to potential losses. Conflicts of Interest: In the administration of client accounts, portfolios and financial reporting, the Adviser faces inherent conflicts of interest which are described in this brochure. Generally, the Adviser mitigates these conflicts through its Code of Ethics which provides that the client’s interest is always held above that of the Firm and its associated persons. Supervision of Trading Operations: The Adviser, with assistance from its brokerage and clearing firms, intends to supervise and monitor trading activity in the portfolio accounts to ensure compliance with firm and client objectives. Despite the Adviser’s efforts, however, there is a risk that unauthorized or otherwise inappropriate trading activity may occur in portfolio accounts. Depending on the nature of the investment management service selected by a client and the securities used to implement the investment strategy, clients will be exposed to risks that are specific to the securities in their particular investment portfolio. Security Specific Risks: Liquidity: Liquidity is the ability to readily convert an investment into cash. Securities where there is a ready market that is traded through an exchange are generally more liquid. Securities traded over the counter or that do not have a ready market or are thinly traded are less liquid and may face material discounts in price level in a liquidation situation. 17  Currency: Overseas investments are subject to fluctuations in the value of the dollar against the currency of the investment’s originating country. This is also referred to as exchange rate risk Limited Liquidity of Interests: An investment in a partnership usually involves substantial restrictions on liquidity and its interests are not freely transferable. There is no market for these interests and no market should be expected to develop. Additionally, transfers are usually subject to the consent of the general partner at the general partner’s sole discretion. Item 9-Legal and Disciplinary The firm and its employees have not been involved in legal or disciplinary events related to past or present investment clients. Item 10-Other Financial Industry Activities and Affiliations Insurance Affiliations Investment adviser representatives of Newport Wealth Advisors may be licensed to sell insurance products through various independent insurance agencies. In some instances, certain investment adviser representatives may sell insurance products through their independently owned insurance agency. In either case, these investment adviser representatives, in their capacity as independent insurance agents, may sell insurance products to advisory clients. These individuals will receive normal and customary commissions as a result of selling insurance as well as advisory fees for providing advisory services through Newport Wealth Advisors. Clients are hereby advised that such commissions and advisory fees are separate and apart from the fees charged by the Firm. Clients are under no obligation, contractually or otherwise, to purchase insurance products or receive investment advice through these associated persons in their separate capacities as insurance agents and/or advisory representatives of Newport Wealth Advisors. However, if the client freely chooses to implement the plan through such individuals, the investment adviser used will be Newport Wealth Advisors, and commissions/fees will be earned in addition to any fees paid for advisory services provided by the Firm. Brokerage Affiliations Separate and distinct from Newport Wealth Advisors, investment adviser representatives of Newport Wealth Advisors are Registered Representatives of Centaurus Financial, Inc. (“Centaurus”), a registered broker/dealer. Centaurus and Newport Wealth Advisors are unaffiliated firms. Investment adviser representatives of Newport Wealth Advisors will suggest that clients place transactions through Centaurus, among others. If securities products offered by Centaurus are purchased 18  through the Representative of Centaurus, normal commissions and fees would be earned. Thus a conflict of interest exists between their interests and those of advisory clients when deciding if a proposed security transaction is to be considered as part of our outside of the investment advisory contract. However, all affiliated personnel of the Adviser are subject to the Adviser’s Code of Ethics and the Adviser will monitor transactions for proper trade execution in order to fulfill its fiduciary responsibilities to clients.. Clients may, but are not required to use the services of the broker dealer with which the Investment Adviser Representatives are affiliated. When effecting brokerage transactions, registered representatives are not permitted to exercise full discretionary authority on behalf of brokerage clients. Clients of the Adviser are not required to use the brokerage services offered by the registered representatives associated with the Adviser. The Adviser does not make any representation that the brokerage services are at the lowest cost available and clients may be able to obtain those services and/or products at a more favorable rate from other brokerages. Item 11-Code of Ethics, Participation or Interest in Client Transactions and Personal Trading Code of Ethics Newport Wealth Advisors has adopted a Code of Ethics which establishes standards of conduct for its supervised persons. The Code of Ethics includes general requirements that such supervised persons comply with their fiduciary obligations to clients and applicable securities laws, and specific requirements relating to, among other things, personal trading, insider trading, conflicts of interest and confidentiality of client information. It requires supervised persons to report their personal securities transactions and holdings quarterly to Newport Wealth Advisors’ Compliance Officer, and requires the Compliance Officer to review those reports. It also requires supervised persons to report any violations of the Code of Ethics promptly to Newport Wealth Advisors’ Compliance Officer. Each supervised person of Newport Wealth Advisors receives a copy of the Code of Ethics and any amendments to it and must acknowledge in writing having received the materials. Annually, each supervised person must certify that he or she complied with the Code of Ethics during that year. Clients and prospective clients may obtain a copy of Newport Wealth Advisors’ Code of Ethics by contacting the Compliance Officer of Newport Wealth Advisors. Participation or Interest in Client Transactions From time to time, Newport Wealth Advisors or persons associated with Newport Wealth Advisors may buy or sell securities that are recommended to its clients or securities in which its clients are invested. This presents a conflict of interest. To mitigate this conflict, it is Newport Wealth Advisors’ policy that associated persons 19  of Newport Wealth Advisors shall not have priority over any client account in the purchase or sale of securities. Under certain circumstances, exceptions to the trading policy may be made. Personal Trading The Chief Compliance Officer of Newport Wealth Advisors is L. Michael DePaul. He reviews all employee trades each quarter (except for his own trading activity that is reviewed by another principal or officer of the Firm). The personal trading reviews ensure that the personal trading of employees does not affect the markets, and that clients of the firm receive preferential treatment. Item 12-Brokerage Practices Brokerage Selection and Soft Dollars Newport Wealth Advisors will recommend that securities be purchased through Charles Schwab and Co. (“Schwab”), a Member of FINRA/SIPC. Schwab is independent and unaffiliated with our firm. It may be the case that Schwab charges higher fees or commission rates than another broker charges. Clients may utilize the broker/dealer of their choice and have no obligation to purchase or sell securities through such broker as Newport Wealth Advisors recommends. include In suggesting or considering a broker dealer based on discretionary authority or on behalf of a nondiscretionary account, the Firm will endeavor to recommend those brokers or dealers that will provide quality services at reasonable commission rates. The reasonableness of commissions is based on several factors, including the broker’s ability to provide professional services, competitive commission rates, volume discounts, execution price negotiations, and other services. It is the policy and practice of Newport Wealth Advisors to strive for the best price and execution for costs and discounts which are competitive in relation to the value of the transaction and which comply with Section 28(e) of the Securities Exchange Act of 1934, as amended. Nevertheless, it is understood that Newport Wealth Advisors may pay compensation on a transaction in excess of the amount of compensation that another broker or dealer may charge so long as it is in compliance with Section 28(e), and Newport Wealth Advisors makes no warranty or representation regarding compensation paid on transactions. The research products and services that Newport Wealth Advisors may receive from financial publications, information about particular Schwab may companies and industries, and other products or services that provide lawful and appropriate assistance to the Firm in the performance of its investment decision-making responsibilities. Such research products and services are provided to all investment advisers who utilize Schwab and are not considered to be paid for with soft dollars. 20  However, the commissions charged by a particular broker for a particular transaction, or set of transactions, may be greater than the amounts another broker who did not provide research services or products might charge. Order Aggregation The nature of the clients and/or trading activity on behalf of client accounts are such that trade aggregation does not garner any client benefit. Directing Brokerage for Client Referrals The Adviser and its associated persons do not receive client referrals from broker dealers or third parties as consideration for selecting or recommending brokers for client accounts. Directed Brokerage In limited circumstances and at the Firm’s discretion, some clients may instruct Newport Wealth Advisors to use one or more particular brokers for the transactions in their accounts. Clients who may want to direct the Firm to use a particular broker should understand that this may prevent Newport Wealth Advisors from effectively negotiating brokerage compensation on their behalf and may also prevent Newport Wealth Advisors from obtaining the most favorable net price and execution. Moreover, clients that direct brokerage may incur additional costs for performance reporting. Thus, when directing brokerage business, clients should consider whether the commission expenses, execution, clearance, and settlement capabilities that they will obtain through their broker are adequately favorable in comparison to those that Newport Wealth Advisors would otherwise obtain for its clients. Item 13-Review of Accounts Periodic Reviews Account reviews are performed on an ongoing basis and no less than quarterly. Reviews are conducted for the purpose of evaluating, reporting and implementing the investment objective of the client. They consider the client's current security positions and the likelihood that the performance of each security will contribute to the 21  investment objectives of the client. The accounts are reviewed by the Investment Adviser Representative who is responsible for the account. Review Triggers Accounts are reviewed quarterly or more frequently when market conditions dictate. Other conditions that may trigger a review are changes in the tax laws, new investment information, and changes in a client's financial or personal situation. Regular Reports Newport Wealth Advisors may provide clients with quarterly reports for managed accounts. The written reports may include account valuation, performance stated in dollars and as a percent, net worth statement, portfolio statement, and a summary of objectives and progress towards meeting those objectives. Clients receive statements of account positions no less than quarterly from the account custodian. Item 14-Client Referrals and Other Compensation Referrals Employee and non-employee (outside) solicitors, e.g. unaffiliated broker/dealers, investment advisers, accountants, attorneys, etc., who are directly responsible for bringing a client to Newport Wealth Advisors, may receive compensation from Newport Wealth Advisors for the client referral. Under these arrangements, the client does not pay higher fees than Newport Wealth Advisors’ normal/typical advisory fees. Such arrangements will comply with the requirements set forth under the Investment Advisers Act of 1940 and/or the applicable state Securities Act, including a written agreement between Newport Wealth Advisors and the solicitor. Non-employee solicitors must provide a copy of Newport Wealth Advisors’ ADV Part 2A (Disclosure Brochure) and a separate solicitor’s disclosure statement regarding the relationship between the solicitor and Newport Wealth Advisors to the prospective client at the time of the solicitation or referral. The prospective client will be requested to acknowledge this arrangement prior to acceptance of the account for advisory services. Applicable state laws may require these persons to become either licensed or registered as representatives of Newport Wealth Advisors or as an independent investment adviser. Item 15-Custody Custody Policy Newport Wealth Advisors does not accept or permit the Firm or its associated persons from obtaining custody of client assets including cash, securities, acting as trustee, provide bill paying service, have password access to control account activity or any 22  other form of controlling client assets. All checks or wire transfer to fund client accounts are required to be made out to/sent to the account custodian. Account Statements All assets are held at qualified custodians and the custodians provide account statements not less than quarterly to clients at their address of record. Clients should carefully review such statements for any discrepancies or inaccuracies. Performance Reports Pursuant to recent amendments to Rule 206(4) under the Investment Advisers Act of 1940, the Securities and Exchange Commission now requires advisers to urge clients to compare the information set forth in their statement from the Adviser with the statements received directly from the custodian to ensure accuracy of all account transactions. Standing Letters of Authorization The SEC issued a no‐action letter (“Letter”) with respect to the Rule 206(4)‐2 (“Custody Rule”) under the Investment Advisers Act of 1940 (“Advisers Act”). The letter provided guidance on the Custody Rule as well as clarified that an adviser who has the power to disburse client funds to a third party under a standing letter of instruction (“SLOA”) is deemed to have custody. As such, our firm has adopted the following safeguarding procedures in conjunction with our custodian, Schwab: • Schwab’s forms, used to establish a standing letter of authorization, include the name and account number on the receiving account and must be signed by the client. • Schwab’s SLOA forms currently require client’s signature. • Schwab performs verification on all SLOA forms and sends a transfer of notice to the client promptly following the transaction. • Clients always have the ability to terminate (or amend) an SLOA in writing. • Our firm has no authority, or ability, to amend the third party designated on a standing instruction. • Our firm maintains records showing the third party is not a related party of our firm or located at our firm. • Schwab notifies the client in writing when a new standing instruction is set up. Clients also receive an annual mailing reconfirming the existence of the standing instruction. Clients are encouraged to raise any questions with us about the custody, safety or security of their assets and our custodial recommendations. Item 16-Investment Discretion Clients can grant Newport Wealth Advisors complete discretion over the selection and amount of securities to be purchased or sold without obtaining their prior consent 23  or approval. However, Newport Wealth Advisors’ investment authority may be subject to specified investment objectives, guidelines and/or conditions imposed by the client. For example, a client may specify that at the time of purchase the investment in any particular stock or industry should not exceed specified percentages of the value of the portfolio and/or restrictions or prohibitions of transactions in the securities of a specific industry. Where the Firm enters into non-discretionary arrangements with clients, Newport Wealth Advisors will implement recommended transactions upon obtaining client approval. Item 17-Voting Client Securities Newport Wealth Advisors will not vote nor advise clients how to vote proxies for securities held in client accounts. The client clearly keeps the authority and responsibility for the voting of these proxies. Newport Wealth Advisors does not give any advice or take any action with respect to the voting of these proxies. For accounts subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”), the plan fiduciary specifically keeps the authority and responsibility for the voting of any proxies for securities held in plan accounts. Newport Wealth Advisors promptly passes along any proxy voting information to the clients or their representatives. Item 18-Financial Information Newport Wealth Advisors does not have any financial impairment that will preclude the firm from meeting contractual commitments to clients. Newport Wealth Advisors meets all net capital requirements that it is subject to and Newport Wealth Advisors has not been the subject of a bankruptcy petition in the last 10 years. 24  Newport Wealth Advisors is not required to provide a balance sheet as it does not serve as a custodian for client funds or securities, and does not require prepayment of fees of more than $1,200 per client, and six months or more in advance. 25