Firm Info
Firm Size
Services Offered
- Financial Planning
- Portfolio Management for Individuals & Small Businesses
- Portfolio Management for Businesses or Institutional Clients
- Educational Seminars & Workshops
Types of Clients
- Individuals (Not High Net Worth)
-
Individuals High Net Worth
*>=750k in Investable Assets or >=1.5m of Estimated Total Net Worth
- Charitable Organizations
- Corporations or Other Businesses Not Listed Above
Available Fee Structures
- Percentage of Assets Under Management (AUM)
- Hourly
- Fixed Fees (Other than subscription)
- Commissions
Madrona Financial Services, LLC Overview
Madrona Financial Services, LLC is an established registered investment advisory firm that has been in operation since 2005. Based in Everett, Washington, the firm offers a wide range of financial services to individuals, small businesses, and institutional clients. The firm employs a fee-based arrangement, which ensures transparency in its financial dealings and aligns its interests with those of its clients. As an insurance broker and agent, Madrona Financial Services, LLC provides investment advice that covers insurance options for individuals and businesses. The firm also offers financial planning services, which aim to help individuals and businesses achieve their financial goals through strategic planning for savings, investments, and retirement. One of the key services offered by Madrona Financial Services is portfolio management for individuals and small businesses. Through this service, the firm helps clients manage their investments by assessing their risk tolerance, goals, and time horizon and developing a personalized strategy that suits their unique needs. Madrona Financial Services, LLC also offers portfolio management for businesses and institutional clients. This service is designed to help large organizations and businesses optimize their investments, manage risks, and generate maximum returns while adhering to their specific investment objectives. Finally, the firm provides educational seminars and workshops to interested clients and the community as a whole, geared towards promoting financial literacy and empowering individuals with the knowledge necessary to make informed financial decisions.
MADRONA FINANCIAL SERVICES, LLC provides a wide range of services to a diverse client base. The firm serves individuals, high net worth individuals, charitable organizations, as well as different types of corporations that are not specifically listed. The team at MADRONA FINANCIAL SERVICES, LLC understands that each client’s financial situation is unique, and therefore, tailors its services to match the clients’ individual needs. When it comes to fees, MADRONA FINANCIAL SERVICES, LLC offers various fee structures depending on the service provided. The team can charge a percentage of assets under management (AUM), an hourly fee, or a fixed fee. In addition, the firm may earn commissions on certain products and services. Each fee structure has its own advantages and disadvantages, and the client can work with the team to determine the best option for their specific needs. MADRONA FINANCIAL SERVICES, LLC strives to be transparent with its fees and is committed to providing excellent value to its clients.
Typical Clients, Fee Structures & Investment Minimum
According to MADRONA FINANCIAL SERVICES, LLC's Part 2 Brochure, they do have an investment minimum requirement for their services. Specifically, their brochure notes that "our minimum portfolio size or household relationship has been established at $500,000." Therefore, clients interested in working with MADRONA FINANCIAL SERVICES, LLC should be prepared to meet this minimum investment requirement.
How This Office Can Help Everett, WA Residents
Edward Jones - Financial Advisor: Keith T Sandvoss, AAMS® is dedicated to providing clients in Fort Mill, SC with the tools and knowledge they need to meet their financial goals. With over 10 years of experience in the industry, Keith T Sandvoss has helped numerous clients in the area navigate the complex world of investments, retirement planning, and wealth management. Living in Fort Mill, SC, individuals may face a variety of financial situations, from planning for retirement to saving for their children's education. Keith T Sandvoss works closely with each client to understand their unique needs and goals, and then develops a personalized financial strategy designed to help them achieve those objectives. Whether someone is just starting to save for retirement or is looking to maximize their investments, Keith T Sandvoss has the expertise and experience necessary to help them succeed.
Services Offered by Madrona Financial Services, LLC
Core Advisor Services
Financial Planning
Financial planning services encompass the process of devising strategies for your future financial well-being, including preparing for events such as retirement, funding your child's college education, or planning for the transfer of assets.
Portfolio Management for Individuals & Small Businesses
Portfolio management entails the careful selection and strategic management of investment combinations tailored to meet the needs of individuals and small businesses.
Market Timing Services
Market timing services involve the endeavor to generate short-term profits from investments by capitalizing on opportunities to buy at low prices and sell at high prices.
Other Services
Selection of Other Advisors
The firm provides support in selecting and engaging other advisors who possess specialized expertise to complement your financial needs.
Publication of Periodicals or Newsletters
The firm engages in the dissemination of diverse financial educational materials through the publication of periodicals.
Educational Seminars & Workshops
The firm organizes and conducts seminars or workshops aimed at enlightening investors on various financial concepts.
Fee Structures
Financial advisory fees usually are based on the services provided. Fee types charged by Madrona Financial Services, LLC most likely consist of the following fee types: asset-based, hourly or fixed. Wrap fee programs, or the practice of bundling services for a single fee, are not offered by the firm.
Available
Percentage of Assets Under Management (AUM)
This fee structure charges a percentage of the assets under management by the firm. Fee structures are often tiered based on the amount of assets managed, with higher AUM often charged a lower rate.
Between 0.50% and 2.00% of assets under management (annually), often lower for a robo advisor. Fees are typically charged quarterly by the firm and will show on your investment statement. View typical advisor costs here.
~96% of registered firms offer this fee structure.
If you have $1 million managed by a firm at a 1% management fee, you would be charged $10,000/year to manage your assets (or $2,500 per quarter). This would be automatically deducted from your investment portfolio.
Hourly
Similar to an attorney, a financial consultant might charge fees based on hourly rates. This fee structure can be advantageous when seeking specific or ad hoc advice.
Charges generally span from $150 to $400 per hour, depending on the extent of the services required.
~33% of registered firms offer this fee structure.
If you needed hourly consulting to sell a business or transfer your estate to your children but did not want your assets managed by a firm, you could consult a firm at an hourly rate to answer any questions you may have.
Fixed Fees (Other than subscription)
Fixed fees are a one-time, lump-sum payment rendered for a specific service, such as creating a financial plan without ongoing management or implementation. This option is beneficial if you solely require guidance for a particular objective rather than a long-term consultancy or asset management.
Fixed fees for creating a financial plan often range from $1,000 to $3,000.
~49% of registered firms offer this fee structure.
If you did not want a firm to manage your assets but needed to create a retirement plan, life transition plan such as divorce or loss of a spouse, estate transition plan, business financial plan, or any other financial planning, you could consult with an RIA firm to help you with the creation of that plan.
Commissions
Occasionally, advisors are compensated through commissions by selling certain financial products, such as mutual funds or life insurance policies, or as a broker-dealer by facilitating the buying and selling of securities. Advisors who receive commissions may be incentivized to make specific suggestions to clients in order to secure a commission. Advisors who operate on a fee-only basis do not earn commissions, whereas fee-based advisors may do so.
Often 3% - 6% of the value of the security.
Only ~3% of registered firms say they offer this fee structure, but other advisors may receive “soft dollars”. Many mutual funds charge 12b-1 fees to cover the promoting and selling of the fund’s shares. While your advisor does not charge these fees, they may receive a kickback for recommending the investment.
An advisor selling their client on a life insurance policy and receiving a commission on the sale of that policy, or recommending a specific investment and receiving a kickback for that recommendation.
Unavailable
Subscription (Newsletter or Periodical)
Performance-based Fees
Advisors typically obtain performance-based fees if a portfolio surpasses a predefined benchmark. This fee is determined through various methods, but is most commonly assessed as a percentage of investment gains. Performance-based fees may incentivize advisors to undertake riskier decisions in pursuit of generating higher returns.
“Two and Twenty” is common among hedge funds with a 2% management fee and a 20% incentive fee above the “hurdle rate,” or performance threshold the fund is compared against.
32% of registered firms offer this fee structure.
A hedge fund earns a 15% return with a 20% performance fee in above the performance of the S&P 500, which grew 7% that same year.
20% of fund growth in excess of S&P 500’s 7% growth for that year = 15% hedge fund growth - 7% S&P 500 growth = 8% difference x 20% = 2% performance fee (in addition to the management fee).
Other
Firms occasionally offer unconventional fee structures when charging clients. For more detailed information about a firm’s specific fee structures, please refer to their Form ADV and Part 2 Brochure.
Types of Clients
*The Securities & Exchange Commission defines someone as “high net worth” if they have $750,000 or more in investable assets or $1.5M of estimated total net worth.
This Office Location
Other Office Locations
This firm has no other locations.
State Registrations
Madrona Financial Services, LLC is registered to service clients in the following states:
- Arizona
- California
- Florida
- Idaho
- Nebraska
- North Carolina
- Oregon
- Texas
- Utah
- Washington
Disciplinary History
Madrona Financial Services, LLC does not have any disclosures. Please visit it's Form ADV for more details.