Annex Wealth Management is a fee-only fiduciary investment advisory firm based in Elm Grove, Wisconsin. The firm also has five other branch offices throughout The Badger State, plus one in Naples, Florida. It has $2.44 billion in assets under management and 22 financial advisors on staff. 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 three 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; and Annex Investment Services, which is currently dormant. 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 David J. Spano, the firm’s president and CEO.
What Types of Clients Does Annex Wealth Management Accept?
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.
The firm uses screen-sharing technology and can work with client's throughout the country. It currently works with clients in 37 states.
Annex Wealth Management Minimum Account Sizes
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 firm offers the following wealth management and financial planning services:
- Private wealth mangement
- 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 recently completed its transition to being a fully fee-only firm.
Awards and Accolades
Annex recieved the following accolades in 2019:
- Financial Times 300 Top Registered Investment Advisors
- Financial Advisor Magazine Top Advisor
- Barron's Top 1,200 Advisor
- CityWire Future 50 RIA
What to Watch Out For
Annex notes that its financial planning clients usually end up also using the firm’s investment management services. The firm says that this has the potential to create a conflict of interest, as the company earns a larger fee the more assets a client has under management. Thus, the financial planner may want the client to invest more. Still, the firm is bound by fiduciaty duty to act in the client's best interest.
Annex Wealth Management has no disclosures on its record.
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, email firstname.lastname@example.org or text "Get Started" to the number above.
Where Is Annex Wealth Management Located?
The firm is headquartered in Elm Grove, Wisconsin. There are five other office locations throughout the state in Mequon, Delafield, Appleton, Middleton and Milwaukee. There is also an office in Naples, Florida.
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