A magnetic material may be fabricated with a plurality of magnetic filler particles dispersed within a carrier material, wherein at last one of the magnetic filler particles may comprise a ferromagnetic core coated with an inert material to form a shell surrounding the ferromagnetic core. Such a coating may allow for the use of ferromagnetic materials for forming embedded inductors in package substrates without the risk of being incompatible with fabrication processes used to form these package substrates.