Annex Wealth Management is an investment advisory firm based in Elm Grove, Wisconsin. The firm also has four other branch offices throughout The Badger State. It has $1.83 billion in assets under management and 40 financial advisors on staff.
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 Savvy, 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 five offices (in Elm Grove, Mequon, Delafield, Appleton and Milwaukee), the firm may especially work for you as you’ll be able to meet with your advisor in person.
Annex Wealth Management Minimum Account Sizes
Annex Wealth Management does not list a required minimum account size for its traditional managed accounts. It does require a minimum investment of $10,000 for its Savvy online investing platform.
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:
- Overall financial planning
- Retirement planning
- Legacy and estate planning
- ERISA fiduciary consulting
- Education planning
- Tax reduction planning
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 estimates before it provides the services.
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.
Also of note is that most of Annex’s advisors are also registered with a broker-dealer and many are insurance agents. However, the company does not receive commissions for transactions executed inside an advisory account.
Aside from potential conflicts of interest and outside affiliations, potential clients should also note the firm’s client-to-advisor ratio. Annex Wealth Management has a big roster of clients, boasting more than 5,000 combined individual and high-net-worth individual accounts, and it has more than $1.8 billion in total assets under management. It only has 40 advisors on staff, though. This means that you will be less likely than at some other advisory shops to get individualized service. If you want a truly boutique experience where your advisor is only advising a small number of clients, this may not be a good fit for your needs.
Annex Wealth Management has no disclosures on its record from the past 10 years.
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.
Where Is Annex Wealth Management Located?
The firm is headquartered in Elm Grove, Wisconsin. There are four other office locations throughout the state, in Mequon, Delafield, Appleton and Milwaukee.
Financial Planning Tips
- Choosing the right financial advisor is a key part of achieving your financial goals. It’s not always easy to find the right financial advisor though, partly because there are just so many options out there. SmartAsset can help you narrow down your options with our free financial advisor matching service. After you answer a few questions, we will match you with up to three financial advisors based in your area. We have fully vetted every advisor on our platform and ensured they are free of disclosures.
- It’s key to know where you’ll be getting your income in retirement. As you get ready for retirement, you should understand, for instance, the difference between a pension and an annuity, and which you might better serve you.
- This retirement calculator can help you know how much money you’ll likely have when you retire. You can use this number as a baseline as you make decisions about your financial future.