Annex Wealth Management is a fee-only fiduciary investment advisory firm based in Elm Grove, Wisconsin. The firm also has several other branch offices throughout The Badger State, plus one in Naples, Florida. The staff includes advisors with certifications including certified financial planner (CFP), certified public accountant (CPA) and chartered financial analyst (CFA).
The firm mainly works with individuals, though it also serves a significant number of high-net-worth individuals. Annex also counts pension and profit-sharing plans, charitable organizations, state or municipal government entities and other corporations as clients. In addition to its traditional investment advisory and financial planning services, Annex also has an online advisory service called Annex Ignite, which matches clients with a low-cost model portfolio.
Annex Wealth Management Background
Annex Wealth Management was founded in 2001. It is the sole member to four other companies: Annex Insurance Services LLC, a licensed corporate insurance agent; Annex Advisory Services, the investment advisory arm of the company registered with the SEC; Annex Investment Services and Annex Tax Services, LLC. The companies are collectively referred to as Annex Wealth Management.
Each of the subsidiary companies is wholly owned by Annex Wealth Management. Annex Wealth Management is wholly owned by Dave J. Spano, the firm’s president and CEO.
Annex Wealth Management Client Types and Minimum Account Sizes
Annex Wealth Management primarily serves individual investors, including high-net-worth individuals. It also works with pension and profit-sharing plans, trusts, estates, charitable organizations, corporations and other business entities.
The firm is likely a good choice for anyone looking for independent advice without connections to a major bank or insurance company. If you are located in Wisconsin, particularly near one of the firm’s offices (in Elm Grove, Mequon, Middleton, Delafield, Appleton, Milwaukee and Naples, Florida), the firm may especially work for you as you’ll be able to meet with your advisor in person.
Annex Wealth Management does not list a required minimum account size for its traditional managed accounts.
Services Offered by Annex Wealth Management
Annex Wealth Management offers investment management, asset selection, asset allocation and rebalancing to its clients. Investment advice is offered either through individual consultations or continuously on a discretionary basis.
Additionally, the firm offers the following wealth management and financial planning services:
- Private wealth management
- Financial planning
- Tax planning
- Retirement planning
- Legacy and estate planning
- ERISA fiduciary consulting
- Education planning
- Tax reduction planning
- Risk management
- Insurance planning
- 401(k) services
Annex Wealth Management Investment Philosophy
Annex Wealth Management uses actively managed mutual funds, ETFs and individual stocks to build a customer’s portfolio. It looks for active managers that outperform similar funds when adjusted for risk. The firm tends to select mutual funds for sectors of the market that are less efficient. ETFs, meanwhile, are preferred for the more efficient areas of the market. Annex also uses variable annuities, fixed-income strategies and cash.
The firm employs a core and tactical investment philosophy, which focuses on creating globally diversified portfolios. Annex explains in its Form ADV that it strives to “combine the benefits of a long-term core portfolio with the potential for reduced risk and/or enhanced returns through tactical investment selections.”
Fees Under Annex Wealth Management
Unlike some companies that have a set fee structure, Annex makes a point of having its wealth management fees subject to negotiation. The firm bases its fees on the “scope and complexity” of the services offered to each client. The firm notes that clients’ fees will never exceed a maximum rate of 1.50% of assets under management per year, and fees generally average around 1.00% per year. Fees are charged on a quarterly basis and are based on the total amount in a client’s account on the last day of the quarter.
For consulting services, Annex may charge an asset-based, hourly or flat fee. Flat fees start at $1,000 and depend on the scope and duration of services. The firm will give clients a written estimate before it provides the services.
The firm, in recent years, completed its transition to being a fully fee-only firm.
What to Watch Out For
There are no disclosures present on Annex Wealth Management's SEC-filed Form ADV.
Opening an Account With Annex Wealth Management
If you are interested in opening an account with Annex, the best way to get in touch is to call its headquarters at (262) 786-6363. From there, the firm will be able to connect you with an advisor who can talk you through your options. You can also click "Get Started" on the firm's website or send an email.
All information is accurate as of the writing of this article.
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