Firm Description
Petra Financial Advisors, Inc. (“Petra” or “the Adviser”), a Colorado corporation formed in 1993, had
its registration granted by the U.S. Securities and Exchange Commission (“SEC”) on June 27, 1991.
Petra provides personal financial planning and investment management services to individuals, high net
worth individuals, retirement plans, families, as well as any related entities, such as trusts, estates and
family businesses and charitable organizations. Petra works with clients to identify and clarify financial
objectives and develop a framework for reaching those objectives, some of which may include: cash
flow management, tax planning, risk identification and management, education funding, retirement
planning, estate planning, charitable giving, special needs planning, business succession, employee
benefits, investment management and/or other issues specific to the client.
Petra’s compensation is solely from fees paid directly by clients. The Adviser does not receive any
commission based on the client’s purchase of any financial product, including insurance. No commissions
in any form are accepted.
Petra may recommend other professionals (e.g. lawyers, accountants, insurance agents, real estate agents,
etc.) at the request of the client. Other professionals may be engaged directly by the client on an as-needed
basis even when recommended by Petra. Any conflict of interest will be disclosed to the client and
managed in the client’s best interest.
Principal Owners
David Stephen Forbes (CRD Number 1069819) is Chairman. Jonathan Forbes (CRD Number 1069819)
is President of the Adviser. David Forbes owns forty (40%) percent of the equity of the Adviser; Jonathan
Forbes owns 20% of the Adviser, and The MAJ Trust dated August 8, 2008 owns 40% of the Adviser.
The Adviser is not publicly owned or traded. Mr. Bill Walton is an indirect owner of the Adviser as the
Trustee of The MAJ Trust.
Petra is operated by Jonathan Forbes (President), David Forbes (Chairman), and Crystal Karstens (Chief
Compliance Officer).
Managed Assets
As of December 31, 2023, the Adviser manages $357,186,375 in client assets, all of which are managed
on a discretionary basis. Clients may request more current information at any time by contacting the
Adviser.
Types of Advisory Services
Petra’s primary business is financial planning. Financial planning begins with identifying and clarifying
the client’s financial objectives. Once the client’s goals have been identified a framework for the future
is developed for reaching those objectives. The following are typical financial planning arrangements
offered to clients:
Lifetime Financial Planning
This service includes financial planning, implementation and ongoing asset management and supervision
services. Petra works with clients to identify and clarify current financial objectives and lifetime goals.
Petra then works with the client to develop a framework for reaching their current objectives in the context
of their lifetime goals. This framework may include: cash flow management, tax planning, risk
identification and management, education funding, retirement planning, estate planning, charitable giving,
special needs planning, business succession, employee benefits, investment management and/or other
issues specific to the client.
An initial written report with analysis of the client’s current situation including goals and a recommended
framework for the future is provided to each client. Once Petra’s recommendations have been approved
by the client, Petra guides each step of the implementation process allowing for the client to gain increased
confidence along the way. Reviews of the client’s plan are scheduled on a routine basis depending on the
client’s circumstances. In addition to these reviews, updates to the client’s financial picture are gathered
during ongoing communication between Petra and the client. With these updates progress toward the
client’s goals is noted as well as any changes that may trigger a plan review. Petra may also review areas
of the client’s plan more frequently and alert the client if immediate changes are recommended.
Financial Potential Report
This service includes financial planning only. No implementation services or ongoing asset management
services are provided. Financial planning may include: cash flow management, tax planning, risk
identification and management, education funding, retirement planning, estate planning, charitable giving,
special needs planning, business succession, employee benefits, investment management and/or other
issues specific to the client. A written report of the client’s current situation including their goals is
provided to the client. Recommendations are given in each area specifically requested by the client.
Investment Management Service
Petra offers investment supervisory services outside of financial planning. An Investment Policy
Statement is created for each client at the beginning of their investment management relationship with
Petra or for those clients using the SEI Platform, at the time they begin utilizing the SEI Platform. Based
on the client’s investment goals and risk tolerance an appropriate investment allocation is determined.
The client’s accounts are then invested and supervised based upon the guidelines established in the
Investment Policy Statement.
Petra will select, recommend and/or retain mutual funds on a fund-by-fund basis. Due to specific custodial
and/or mutual fund company constraints, material tax consideration, and/or systematic investment plans,
Petra will select, recommend and/or retain a mutual fund share class that has higher internal expense ratios
than institutional share classes. Petra regularly seeks to select the lowest cost share class available that is
in the best interest of each Client and will ensure the selection aligns with the Client’s financial objectives
and stated investment guidelines.
Retirement Accounts – When Petra provides investment advice to Clients regarding ERISA retirement
accounts or individual retirement accounts (“IRAs”), Petra is a fiduciary 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. When deemed to be in the Client’s best interest,
Petra will provide investment advice to a Client regarding a distribution from an ERISA retirement
account or to roll over the assets to an IRA, or recommend a similar transaction including rollovers from
one ERISA sponsored Plan to another, one IRA to another IRA, or from one type of account to another
account (e.g. commission-based account to fee-based account). Such a recommendation creates a conflict
of interest if Petra will earn a new (or increase its current) advisory fee as a result of the transaction. No
client is under any obligation to roll over a retirement account to an account managed by Petra.
Retirement Plan Advisory Services
Petra provides advisory services on behalf of company retirement plans (each a separate “Plan”) and
the company/sponsor (the “Plan Sponsor”). The Advisor’s retirement plan advisory services are
designed to assist the Plan Sponsor in meeting its fiduciary obligations to the Plan and Plan Participants.
Each engagement is customized to the needs of the Plan and Plan Sponsor. Services generally include:
• Vendor Analysis
• Plan Participant Enrollment and Education Tracking
• Investment Oversight Services (ERISA 3(21))
• Performance Reporting
• Ongoing Investment Recommendation and Assistance
These services are provided by Petra serving in the capacity as a fiduciary under the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”). In accordance with ERISA Section
408(b)(2), the Plan Sponsor is provided with a written description of Petra’s fiduciary status, the specific
services to be rendered and all direct and indirect compensation the Advisor reasonably expects under
the engagement.
Special Projects
From time to time clients’ circumstances may require unique services outside the normal boundaries of
our Lifetime Financial Planning, Financial Potential Report or Investment Management Services. These
services are offered as a Special Project and have a separate engagement letter. Special Projects may
include implementation of Financial Potential Report recommendations, periodic investment portfolio
review, assistance with tax planning, or other services specifically described in an engagement letter.