Costello Financial Planning Inc

Item 5. Fees and Compensation

As a fee-only firm, Costello Financial Planning, Inc. is compensated directly by its clients and never accepts
commissions, referral fees, or compensation of any kind related to the products recommended to the client or
purchased or sold by clients.

When it is appropriate, the firm may recommend other professionals to its clients. These professionals may
include attorneys, accountants, insurance agents, real estate agents, etc. The firm does not pay or receive any
referral fees or compensation for the referrals made to its clients. These other professionals are engaged
directly by the client on an as-needed basis even when recommended by the firm. Any known conflicts of
interest will be disclosed to the client and managed in the best interest of the client.

Wealth Management, Retirement Plan Consulting, Private Foundation Services Fees

Services are provided on a fee-only basis and are based on a percentage of assets that Costello Financial
Planning, Inc. manages according to the schedule below:

 Total Assets Under Management                             Annual Fee
 First $1,000,000                                          0.99%
 $1,000,001 to $2,000,000                                  0.89%
 $2,000,001 to $3,000,000                                  0.79%
 $3,000,001 to $4,000,000                                  0.69%
 $4,000,001 to $5,000,000                                  0.59%
 Over $5,000,000                                           0.49%

There is a minimum billing quarterly billing of $2,500. Billing is done quarterly in arrears.

Costello Financial Planning, Inc.’s service fees are deducted quarterly from a designated brokerage account at
their qualified custodian. This billing is in arrears. The client must consent in advance to direct debiting of
their investment account for Costello Financial Planning, Inc.’s fees.

Costello Financial Planning, Inc. has the discretion to waive minimum billing. Fees are negotiable.

Unless a client has received the firm’s disclosure brochure at least 48 hours prior to signing the investment
advisory contract, the client may terminate the investment advisory contract within five (5) business days of
signing the contract without incurring any advisory fees.

Other Fees

Custodians may charge transaction fees on purchases or sales of certain mutual funds, stocks, bonds, and
exchange-traded funds. These transaction charges are usually relatively nominal and are incidental to the
purchase or sale of a security. In some cases, custodians also charge monthly, quarterly or annual custody
fees. Fees for custody are disclosed to clients when this type of arrangement is recommended.

Mutual funds and exchange-traded funds generally charge a management fee for their services as investment
managers. The management fee is included in the expense ratio. Mutual fund fees also include transaction
charges for the purchase or sale of securities within the fund and may charge other fees as disclosed in the
fund prospectus. These fees are in addition to the fees paid by the client to Costello Financial Planning, Inc.

Please see the section entitled “Brokerage Practices” for more information.

Past due Accounts and Termination of Agreement

Costello Financial Planning, Inc. reserves the right to stop work on any account that is more than 60 days
overdue. In addition, Costello Financial Planning, Inc. 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 to providing proper financial advice, per the judgment of
Costello Financial Planning. Clients may terminate their agreement at any time by providing written notice.
Terminating clients will receive an itemized bill based on hourly rates for work completed. Any unused
portion of fees collected in advance will be refunded within 30 days. Refunded fees will be sent to the client’s
address of record.

Compensation for Sales of Investment Products

The firm’s compensation is solely from fees paid directly by clients. The firm does not receive a commission
based on the client’s purchase of any financial product, including insurance. No commissions in any form are
accepted. Item 6 – Performance-Based

Item 7. Types of Clients

Costello Financial Planning, Inc. provides advice primarily to individuals, families, retirement plans, and
private foundations.

Costello Financial Planning, Inc. has asset or net worth minimums for Wealth Management, Retirement Plan
Consulting, and Private Foundation services.

There are no requirements for opening or maintaining an account.