Annex Wealth Management is a full-service financial planning and wealth management firm. The firm has 36 investment advisors on staff and more than $2.4 billion in assets under management (AUM). Headquartered in Elm Grove, Wis., Annex Wealth Management primarily serves individuals, high net worth individuals, pension plans and profit-sharing plans.
All information included in this profile is accurate as of December 3, 2019. For more information, please consult Annex Wealth Managementâ€™s website.
|Assets under management: $2,444,755,818|
|Minimum investment: No minimum requirement|
|Fee structure: A percentage of AUM, ranging up to 1.50% for investment management; asset-based, hourly or fixed fees for consulting services|
|Headquarters:||12700 W Bluemound Road
Elm Grove, WI 53122
Annex Wealth Management was founded in 2001 and is registered as an LLC in Wisconsin. The firm is headquartered in Elm Grove, Wis., and it has five additional locations across Wisconsin and an office in Naples, Fla.
Annex Wealth is owned completely by David J. Spano, the firmâ€™s president and CEO. Annex Wealth is also the sole member of three other related companies, Annex Insurance Services, Annex Advisory Services and Annex Investment Services. The firm has 66 employees, 36 of whom perform investment advisory functions. It has more than $2.4 billion in assets under management.
Annex Wealth Management serves a variety of clients, including individuals and high net worth individuals. In addition, Annex offers services to corporations and other business entities, estates, trusts, charities, pension plans and profit-sharing plans.
The firmâ€™s primary focus is on individual investors, with individuals outnumbering high net worth individuals at a 4:1 ratio. This is likely the result of the fact that the firm does not have a minimum investment requirement, which makes it accessible to anyone interested in getting help from a full-service financial planning and wealth management firm. The firm does charge a maximum annual fee of 1.50% of assets under management, though Annex notes that this fee is negotiable.
Annex Wealth Management offers a range of investment management and wealth planning services. For its comprehensive wealth management and financial planning services, the firm charges a â€śbundledâ€ť fee, which covers the ongoing financial planning and wealth management services that the firm selects for each client based on their needs. In general, the firm begins by offering financial planning services, which often lead to investment management and advisory services that are designed to help clients reach their goals. The firmâ€™s financial planning services include retirement planning, risk management, estate and legacy planning and tax planning.
Annex also offers ongoing consulting services designed to provide insight and analysis to clients on their investments and financial situations. The firm then uses these insights to develop a plan to help clients achieve their objectives.
Additionally, Annex offers Ignite, an online investment management platform. While this service includes online investment analysis and account opening and transfer capabilities, it does not include Annexâ€™s financial planning services. With Ignite, a client creates a personal profile, which is then matched to an actively managed model portfolio based on their risk tolerance. Clients who use this service have their assets held at TD Ameritrade.
Finally, Annex Wealth Management also provides pension consulting services to retirement plans that are covered under ERISA.
Here is a full list of services offered by Annex Wealth:
In general, Annex employs what it calls a â€śCore and Tactical Investment Strategyâ€ť designed to include short-term and long-term strategies that focus on risk management while at the same time promoting growth when it looks like thereâ€™s a new opportunity.
The idea behind a core approach is to focus on long-term strategies like more traditional asset allocation with stocks and bonds. On the other hand, a tactical approach is about short-term trades that are intended to capture current growth opportunities. As a result, you might end up with some of your portfolio being used to buy investments that might be traded again as quickly as a month. However, a good portion of your portfolio will likely be kept in assets designed to be held for several years.
Annex also focuses on selecting assets that are low-cost, even while using actively managed accounts. The firm attempts to balance risk with clientsâ€™ cash flow needs. While Annex mainly uses exchange-traded funds (ETFs) in its client accounts, it also makes use of individual equities, fixed-income securities, variable annuities, mutual funds and cash.
When calculating fees for its comprehensive wealth management and limited discretionary asset management services, Annex Wealth Management considers the types of assets used to accomplish client goals as well as the complexity and scope of the services and investments involved.
Annex charge a maximum fee of 1.50% of assets under management for its wealth management services, though the average fee that clients pay is typically around 1.00%. Clients are billed quarterly, and fees are generally deducted directly from clientsâ€™ investment accounts.
Itâ€™s important to note that clients might also incur other fees outside of the asset-based fee that the firm charges. For example, a custodial fee might be charged if you hold money with a third party, and there are mutual fund and ETF expense ratios to consider. There might also be markups and transaction fees when trading takes place outside Annex Wealth Management.
For its consulting services, the firm charges either an asset-based fee, an hourly rate or a flat fee. The flat fee for these services starts at $1,000 but can be higher, depending on the types of services provided. Clients who want the firmâ€™s continued monitoring or management beyond the scope of the initial consulting services will need to pay an additional fee.
Annex Wealth Management has no disciplinary disclosures to report. The firm has a clean record with no prior legal or regulatory issues on its record.
To get started, clients can fill out a form on the firmâ€™s website. Information requested on the form includes:
Once you submit the form, someone from the firm will contact you about setting up an appointment to more fully discuss your needs. Annex also offers an online chat function that you can use to get more information about the firm.
For those looking for a more personalized approach to long-term financial planning and wealth management, Annex Wealth Management may be a solid choice. The firm prides itself on offering individualized solutions, rather than menu-based options, and there is no minimum investment required, which makes the firm accessible to all levels of investors. Even if you donâ€™t decide to pay for investment management, itâ€™s still possible to get fee-based consultation services from the firm.
However, itâ€™s worth noting that the firmâ€™s fees may be higher than average. Annex does not provide a fee schedule like many firms do, and while you know your fee will be capped at 1.50% for wealth management services, you wonâ€™t actually know your rate until you sit down with an advisor. Make sure you look around before you get started, as itâ€™s a good idea to compare your options before making a decision about whether Annex Wealth Management is right for you.
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