Townsend Personal Financial Planning LLC

Item 5: Fees and Compensation
Townsend Wealth Management is a fee-only firm. This means that 100% of firm revenue is received as
payments directly from clients. We do not receive any money from third parties, such as commissions for
recommending or selling any products or services. We believe this eliminates an incentive to recommend
investment products based on the compensation received, rather than on our clients’ best interests.

Investment Management Fees
For investment management services, we charge based on a percentage of the client’s assets that we
manage. Our fee schedule for all new clients, other than employees of Townsend Wealth Management
and their families is:

        $0 - $1,000,000                 1.00%
        $1,000,001 - $2,000,000         0.80%
        $2,000,001 - $5,000,000         0.65%
        $5,000,001 - $10,000,000        0.50%
        $10,000,001 - $20,000,000       0.35%
        $20,000,001 and above           0.20%

Since our founding in 2001, we have made two changes to our rate schedule to reflect changing market
conditions. Because we have never increased rates for existing clients, some clients use a different rate
schedule that is no longer available to new clients. Employees of Townsend Wealth Management and
their families are provided a discounted rate and in some cases no fees apply.

All management fee percentages are annual expenses and are charged quarterly in arrears; we do not
accept prepaid fees for investment management services. Employer sponsored retirement plans for which
we serve as the investment advisor have a minimum charge of $2,500 per year. Our investment
management fees are not negotiable.

Fee Example: Suppose a new client has $2,500,000 in assets to be managed by Townsend Wealth
Management. The annualized fee will be 1% applied to the first $1,000,000; plus 0.8% applied to the next
$1,000,000, plus 0.65% applied to final $500,000. The first payment will be due after one quarter of
investment management and will be calculated as 0.0025 multiplied by the first $1,000,000; plus 0.002
multiplied by the next $1,000,000; plus 0.001625 multiplied by the final $500,000. Investment
management fees are automatically deducted from the investment accounts.

In addition to fees paid to Townsend Wealth Management, investment clients pay trade fees to the
account custodian. Our clients receive a discount on the fees available at retail and range from $0 to $30
per trade, depending on the security and size of the trade. See Item 12 (Brokerage Practices) for more
information on brokerage fees. Mutual funds and ETFs include management expenses paid to the fund
company that are deducted from the share price. The custodian may receive a portion of these fees.
Townsend Wealth Management uses technology to invest in a cost-effective manner that seeks to
minimize trade and fund fees.

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                                                                 Form ADV Part 2A & 2B

Financial Planning Fees
Comprehensive financial plans vary from $2,500 to $5,000 depending upon the complexity of the plan.
The fee is quoted in advance and due after completion of the plan to the satisfaction of the client; fees
are not negotiable. We waive this fee for investment management clients. Additionally, we offer situation-
specific planning at no charge to investment management clients.

Item 7: Types of Clients
We generally provide investment management services to individuals, trusts, charitable organizations,
small businesses, and retirement plans. We have a preferred minimum portfolio size of $500,000 for
which limited exceptions may be granted.