Assets that you entrust for management to Madden Funds Management are placed in custody with Fidelity Investments’ owned clearing firm, National Financial Services LLC, Member NYSE/SIPC—one of the largest clearing and custodians in the industry.
Madden clients will receive monthly statements from Fidelity and a confirmation for every buy or sell generated through Fidelity. At year-end Fidelity prepares tax reporting documents on all taxable accounts. All transactions and history are available through the internet with a personalized user name and password. In addition, each calendar quarter clients will receive a report from Madden Funds Management (Madden) which will reconcile with Fidelity’s statement for the last month of the quarter. The report includes the portfolio’s rate of return and Madden’s perspective on the market conditions.
Madden never takes custody of your money, and never has direct access to it. Fidelity is the custodian for your funds. All checks for deposit to your account(s) must be to ‘Fidelity Investments’ with your account number on the check. Fidelity is responsible for many hundreds of billions of dollars of invested assets, and is federally insured and has private supplemental insurance.
Yes, all investments can be turned into cash within a day using Fidelity’s trading platform. There are never any back-end fees or penalties although a small transaction fee may apply. It is important to note that marketable securities fluctuate and there can be no market performance guarantee.
Madden is a fee-only advisor and fees are charged based on the percentage of assets under management for services rendered. Our fee is clearly defined in our initial client meetings. At the end of each calendar quarter the fee is calculated by multiplying the average account value in the quarter against 1/4 of the annual management fee. Fees are taken from the account by Fidelity and then forwarded to Madden. The management fee appears quarterly on the account’s Fidelity statement, and on Madden’s quarterly report.
Yes, but they do not come to Madden. Since Fidelity charges no fee for account maintenance and receives no compensation from DFA for handling DFA funds, Fidelity charges a $25 transaction fee for each DFA fund transaction. Madden works hard to minimize DFA fund transactions—a client can expect to have less than 10 transactions a year. Fidelity charges no transaction fee for its own funds.
Yes, we manage many individual retirement accounts (IRAs) and Rollover IRAs (transfers from a former employer’s 401k plan). We can prepare the paperwork for your signature to order a direct transfer of assets from your present custodian to your new account at Fidelity.
Most of the time we can’t manage your 401(k) or other retirement assets. If you are a client of ours, we will help you develop the best portfolio you can, using the available funds in your retirement plan—we charge no fee for this service.
Madden does not require clients to liquidate their assets. Positions in qualified accounts and small positions in taxable accounts are routinely sold. Larger positions and concentrated holdings do require greater diligence. In most instances, during the discovery process, Madden determines whether that full or partial liquidation is necessary. Madden is sensitive to tax liability and realizes the importance for clients to have their portfolios adjusted to accurately reflect risk tolerances and overall financial objectives.
Madden, at no fee, offers advice and access to top 529 plans as a service for clients to procure for their children, grandchildren, and nieces or nephews.
Madden advisors are available by phone or appointment at any time. Some of Madden’s clients meet quarterly and some clients find it sufficient to meet once a year. The Madden staff assures clients that they should be comfortable calling whenever a concern related to their financial life is on their mind.
Certainly. We have clients living outside of Illinois, and some of them have never visited our offices. With technology, clients can get all the benefits of our services by communicating with us and maintaining an account via telephone, fax, regular mail, e-mail, and the Internet.