Petrovic Financial Services is a Fee-Only Fiduciary Firm

What does this mean to you?

Fiduciary: \fi-dü-shē-er-ē\ noun, adjOne who is legally and ethically bound to act for another’s benefit. In the client/advisor relationship, a fiduciary must place the client’s interests first.

It is common sense that your financial professional should have the same incentives and priorities that you do – to help ensure that you are successful. However, many investment professionals in the United States are rewarded and compensated not on client success, but on the investment products they sell. This creates inherent conflicts of interest and should call into question their objectivity.

There are three basic ways investment professionals are compensated:

  • Commission-based – The salesman's compensation is determined by the kind of investment product that you are sold and number of times you buy and sell these products. Often, the incentive of the professional may not fully align with the client. (Non-fiduciary or part-time fiduciary)
  • Hybrid – The salesman/advisor can be compensated by fees AND commissions ('double dipping'). In this case, what you do not see (the loads, commissions, bond spreads, etc.) may be substantial. This may limit investment choices and increase the largest cost of investing – opportunity cost. (Non-fiduciary or part-time fiduciary)
  • Fee-Only – The fee-only Registered Investment Advisor (RIA) is compensated only by the client and does not accept commission of any kind. We believe that this is the most transparent, flexible, and client-centric compensation arrangement. (Full-time fiduciary)

We believe a financial professional should always act in your best interest. As a “fee-only” Registered Investment Advisor, we have a fiduciary duty — a legal and ethical responsibility — to act in your best interest. Unfortunately, many financial professionals are not held to a fiduciary standard. By refusing to accept compensation from anyone except our clients, Petrovic Financial Services can place our independence and objectivity beyond question. As a “fee-only” Registered Investment Advisor, our primary incentive is to help ensure you succeed.


Alex Petrovic III signed NAPFA's Fiduciary Oath