Firm Description
Founded in 2001, Annex Wealth Management® is a domestic limited-liability company whose Articles of Organization are
filed with the State of Wisconsin. Annex Wealth Management, LLC is the sole Member to four other domestic limited-
liability companies, namely; Annex Insurance Services LLC, a licensed corporate insurance agent (formed 2003), Annex
Advisory Services LLC, an Investment Advisor federally registered with the US Securities & Exchange Commission
(formed 2003), Annex Investment Services LLC, which is currently dormant (formed 2003), and Annex Tax Services, LLC.
(formed 2017). Collectively, each of these separate limited-liability companies are held out to the public and marketed as
Annex Wealth Management®. Unless specifically noted otherwise, wherever we use the name Annex Wealth
Management or “Annex” throughout this Brochure, we are referring to the registered investment advisor and its
business operations.
Annex offers a wide range of advisory services to individual investors, high net worth individuals, pension and profit-
sharing plans, charitable organizations, trusts, small businesses, partnerships, corporations, and other similar entities.
As its core business function, Annex provides comprehensive wealth management and financial planning services to its
Clients including personalized on-going money management services, financial planning, and consultative services.
Annex tailors its advisory services to the individual needs of its Clients by following a consistent process of goal-setting,
discovery, risk assessment, financial planning, portfolio development, asset management, and monitoring. Annex‘s
advisory services are described in detail within this Brochure. Managed investments may include stocks, bonds,
exchange-traded funds, mutual funds, options, and other alternative investment securities. Clients and prospective
Clients are encouraged to have their questions answered regarding Annex and its services prior to entering into a
contract with Annex.
Annex’s headquarters in Elm Grove, Wisconsin are the central supervisory and management location. Assets under the
management of Annex are held by independent Qualified Custodians including TD Ameritrade Institutional, Schwab
Institutional, and Fidelity Investments in a separate account for each Client under that Client’s name.
Principal Owner
Annex Wealth Management, LLC is wholly owned by Dave J. Spano, CFP®. In turn, Annex Wealth Management, LLC is the
sole member (owner) of its related companies Annex Advisory Services, LLC, Annex Insurance Services, LLC, Annex
Investment Services, LLC. and Annex Tax Services, LLC.
Types of Advisory Services & Tailored Relationships
Annex provides investment advice through individual consultations about investment matters for a fee. Annex also
offers discretionary asset management services where it provides continuous, active, individualized management to
each Client. Additionally, Annex provides consulting services to its Clients about other life planning and business
planning matters outside of the investment industry. All of these services are frequently and collectively referred to as
“financial planning”.
Comprehensive Wealth Management & Financial Planning
Beyond investment management, asset selection, asset allocation, and rebalancing are the comprehensive wealth
management and financial planning services offered to each Annex Client. The bundled fee Annex collects from each
Client for its services contemplates a broad range of wealth management services based on the standards of impartial
conduct – that is, providing advice in each Client’s best interest, charging reasonable fees based on the scope and
complexity of the services provided, and making straightforward statements to each Client about its recommendations.
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In this regard, Annex should be viewed as a “level-fee” fiduciary whose bundled fees are based on individualized and
ongoing comprehensive wealth management and financial planning services without the bias and conflicts of
commissions or variable compensation based upon its recommendations.
Over the course of the relationship, each Client will have the opportunity to consult with Annex and discuss personal
financial opportunities, short and long term financial goals, tolerance for various levels of risk, annual savings objectives,
asset protection, college funding, retirement planning, projected investment returns and projected income streams,
cash-flow projections, tax planning, current and future spending, retirement plan distribution options, pension, Social
Security and Medicare election decisions, estate planning, and charitable giving, along with other financial
considerations.
Annex provides financial planning services to its Clients that usually lead to Clients electing to receive investment
management services from Annex. The bundled fee Annex charges is almost always based on the value of each Client’s
investment accounts. Therefore, Annex has an inherent conflict because its interests are best served by making
financial planning recommendations that result in either retaining or increasing assets under management. Clients
should understand that financial planning recommendations such as paying off a mortgage or gifting, among other
things, may reduce Annex’s assets under management, thereby creating a natural conflict. Annex seeks to effectively
manage this conflict by separating the functions of Client goals-setting and financial planning recommendations to
Clients between two separate departments and by eliminating client withdrawals from any calculation of employee
compensation, including bonuses.
IRA Rollover Recommendations
Effective December 20, 2021 (or such later date as the US Department of Labor ("DOL") Field Assistance Bulletin 2018-02
ceases to be in effect), for purposes of complying with the DOL's Prohibited Transaction Exemption 2020-02 ("PTE 2020-
02") where applicable, we are providing the following acknowledgment to you. When we provide investment advice to
you regarding your retirement plan account or individual retirement account, we are fiduciaries within the meaning of
Title of the Employee Retirement Income Security Act and/or the Internal Revenue Code, as applicable, which are laws
governing retirement accounts. Under this special rule's provisions, we must:
• Meet a professional standard of care when making investment recommendations (give prudent advice);
• Never put our financial interests ahead of yours when making recommendations (give loyal advice);
• Avoid misleading statements about conflicts of interest, fees, and investments;
• Follow policies and procedures designed to ensure that we give advice that is in your best interest;
• Charge no more than is reasonable for our services; and
• Give you basic information about conflicts of interest.
Please Note: Retirement Rollovers Potential for Conflict of Interest: A Client or prospective Client leaving an employer
typically has four options regarding an existing retirement plan (and may engage in a combination of these options): (i)
leave the money in the former employer’s plan, if permitted, (ii) roll over the assets to the new employer’s plan, if one is
available and rollovers are permitted, (iii) roll over to an Individual Retirement Account (“IRA”), or (iv) cash out the
account value (which could, depending upon the Client’s age, result in adverse tax consequences). If Annex recommends
that a Client roll over their retirement plan assets into an account to be managed by Annex, such a recommendation
creates a conflict of interest if Annex will earn an advisory fee on the rolled over assets. No Client is under any obligation
to rollover retirement plan assets to an account managed by Annex. Annex’s Chief Compliance Officer, Naomi K Ackley,
remains available to address any questions that a Client or prospective Client may have regarding the potential for
conflict of interest presented by such rollover recommendation.
Limited Discretionary Asset Management Services
Annex provides investment management services, under the terms of a contract, to Clients who are interested in
allowing Annex to manage their investments on their behalf. Annex will assist the Client with opening a brokerage
Account (or multiple Accounts, as appropriate) and each “Account” at a Qualified Custodian is based on the information
provided by the Client, manage the investments in each Account on the Client’s behalf. Annex will supervise, provide for
ongoing active management, and direct the investments of the Account with respect to the purchase, sale or continued
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holding of securities, subject to any restrictions the Client may impose. While Annex generally utilizes investment
companies (mutual funds), exchange-traded funds, cash equivalents, and individual securities (which may include
stocks, bonds and options) in its Client accounts, it does not limit the types of investments it might consider managing
for a Client. Annex believes that all asset classes – equities, fixed income, alternatives, and cash – are valuable tools in
implementing its investment strategies. As such, Fees for services are based on each account’s total value including
cash and cash equivalents.
Annex may use various software, research, and other tools from unaffiliated companies to assist in the development of
asset allocation models and Client portfolios. Annex’s Investment Committee meets frequently and many of the tactical
allocations in Client accounts will come from the topics and strategies discussed at those meetings. As such, Annex’s
Clients benefit from a “team-approach” to asset allocation and account rebalancing.
Under this program, the Client grants limited discretionary authority over their Account to Annex. This means that when
Annex feels it is appropriate, and without further consultation with the Client, Annex may buy or sell securities in an
attempt to achieve the objectives provided by the Client. The discretionary nature of the Account does not create a
custody relationship between Annex and any Client. Clients may terminate their agreement with Annex at any time and
receive a pro rata refund of any unearned fees. Clients may also impose any reasonable restriction or limitation on the
management of their account. Each Client retains each and every ownership right to the assets in their Accounts,
including the right to withdraw assets for an Account upon appropriate notice to Annex.
Annex may recommend that Clients accessing the Firm’s Limited Discretionary Asset Management Services establish
brokerage accounts with one of its contracted Qualified Custodians. Accounts will generally be in the custody of Fidelity
Investments Institutional Services Company, Inc. (“Fidelity Investments”), Schwab Institutional, a Division of Charles
Schwab & Co. (“Schwab”), TD Ameritrade Institutional, a Division of TD Ameritrade, Inc., Member FINRA/SIPC (“TD
Ameritrade”), or a similar custodian, and each a Qualified Custodian as that term is used in The Investment Advisers Act
of 1940 (the Act) and in Investment Adviser Act Release No. 2176. Accounts will only be opened at Qualified Custodians
with the request and signed application of the Client thereby providing notice to each Client as to their custodial
relationship. Each Custodian will send each Client a statement detailing the balances and activities in their Account over
the previous quarter, including the advisory fees collected by Annex from the Account during the previous period.
Custodians may be registered broker-dealers and SIPC members.
Annex will contact each Client at least annually to review their Account(s) and to determine whether there should be any
changes to the Client profile and how each Account is being managed. The Client may impose any reasonable
restrictions on the management of their Account(s) or modify existing restrictions at any time and with reasonable
notice.
Each Client will receive Account statements from the custodian according to the terms of their custodial contract. In
addition, each Client will receive a consolidated report regarding their Account(s) from Annex quarterly. Clients are
strongly urged to review the reports provided by Annex against the account statements and transaction confirmations
they receive directly from their custodian for any inaccuracies. Clients should IMMEDIATELY notify Annex and the
custodian of any inaccuracies or substantive inconsistencies.
Consulting Services
For Clients having a need for ongoing financial advice or analyses involving an investment, portfolio, financial situation
or condition, Annex offers Consulting Services designed to meet the Client’s needs and expectations. Consulting
Services will generally include investment recommendations, an analysis of a Client's existing portfolio or financial
condition, data gathering about the Client’s financial goals, tolerance to risk, time horizon, tax status, family, and similar
information. Based upon the analyses, a plan is developed to assist the Client in achieving their desired outcome. The
plan may then be implemented at the Client’s discretion in any manner or degree that the Client chooses. In other
words, the Client is free to follow the plan, in whole or in part, or may choose not to follow the plan at all and may do so
with any advisor or investment firm he or she chooses to use. Consulting Services are generally oriented towards
reviewing existing investment portfolios, investment choices in qualified plans, insurance and asset protection
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strategies, risk management, retirement projections, estate or business plans, education savings, trust services,
retirement planning, estate planning, and corporate and small business planning. All of these efforts would collectively
fall under the area of general “financial planning”. Where a written analyses or financial plan is requested, Annex will
generally
utilize third-party provided software to produce financial plans, asset allocation models, portfolio analyses and
similar written reports and plans. The projects encompassed in Annex’s Consulting Services are intentionally broad and
tailored to address the material issues of each Client’s financial goals. The fees paid for Consulting Services, if any, are
exhausted by those services and an additional fee would be required for the ongoing monitoring or management of
Client assets.
Consulting Services may be contracted on a flat fee or as a percentage of the assets for which the Services are being
performed. Flat fees for basic projects can start as low as $1,000 but can be significantly higher depending upon the
scope and duration of the Services provided. A written estimate of the negotiated fees for Services will be provided to
the Client in their Consulting Agreement prior to the initiation of any Services. Annex may require an advance deposit
equal to as much as 100% of the estimated fee. Any remainder of the fee is due to Annex at the time the Services are
completed, and the financial plan or other report is delivered to the Client. Once the fees are paid in full, the Consulting
Agreement will be terminated, and any additional Services will require a new Consulting or other advisory Agreement.
Annex will not collect any fee in excess of $1,200 for Services to be performed six (6) months or more in the future.
Should the contract terminate at the instruction of the Client or Annex, any prepaid and unearned fee will be returned
to the Client.
Pension Consulting Services
Annex provides advisory services to retirement plans (“Plans”), generally covered by Employee Retirement Income
Security Act of 1974 (ERISA). In doing so, Annex represents that it is registered as an investment advisor under the
Investment Advisors Act of 1940 and acknowledges that, with respect to each Client's account, if it is a covered
employee plan, Annex is a "Fiduciary" and "Investment Manager" as defined in sections 3(21)(A) and/or 3(38) of the
Employee Retirement Income Security Act of 1974. Annex will provide participants in each Plan with information about
the Plan features and investment alternatives that is sufficient to enable participants to make informed investment
decisions.
Annex may also provide Limited Discretionary Asset Management services (as described above) to a Plan or to Plan
participants. Annex may also provide additional services in concert with the Plan including assisting in establishing the
investment policy for the Plan, the investment objectives of the Plan, the asset types and classes to be offered under the
Plan, the number of investment options to be offered under each class of investment, the criteria and benchmarks for
the selection and monitoring of the specific investments to be offered under the plan, monitoring the investments in the
Plan and suggesting replacements as appropriate, providing participant education, and advising the Plan Sponsor in
following a fiduciary process. Additionally, Annex may offer to conduct in-person group sessions and provide
educational materials to participants in the Plan, advising them of features, benefits, and investment options under the
Plan. Annex may also offer participants one-on-one meetings and individual advice to create model portfolios where
the participant elects not to make his or her own asset allocation decisions. Participants maintain the sole responsibility
to act upon the advice, unless they individually enter into a separate advisory contract under which Annex would take
on discretionary control and ongoing management for the participants account(s).
Annex does not charge a fee and/or a commission within any Plan, beyond the nominal and disclosed trading and
administrative charges incurred by the Plan Custodian. Annex does not participate in any trading or administrative
charges to Plan assets by custodians nor does it receive any Rule 12b-1 commissions (“trail commissions”) or other
similar compensation for Plans covered by ERISA. Annex will not collect commissions and therefore, does not allow its
advisors to offset consulting fees through the collection of brokerage commissions. Annex does not have any
arrangements with broker-dealers under which it will benefit from money managers placing trades for any Client or
plan with such broker-dealer.
When Annex is hired for any Client account or as a consultant to any Plan, it provides the Plan contact with its Privacy
Policy & Code of Ethics. Within the Code of Ethics, Annex acknowledges in writing that it owes a fiduciary obligation to
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the plan while providing consulting services.
Annex Ignite® (“Ignite”)
Annex Ignite® (or, Ignite) is a consumer-friendly service model primarily provided through an online experience for
Clients who seek online investment analysis, online account opening and account transfer capabilities, and the proactive
asset management philosophies and disciplines of Annex’s investment team. Ignite allows its Clients to create a
personal financial profile that matches them with a model investment portfolio that is cost-conscious, globally-
diversified, and actively managed to meet their personal risk tolerance needs. Ignite follows Annex’s proactive core-and-
tactical investment philosophy to monitor risk, identify opportunities, and dynamically select investments. Ignite
accounts are held in the Client’s name at Schwab Institutional, a Division of Charles Schwab & Co. (“Schwab”), TD
Ameritrade Institutional or Fidelity Investments. The Ignite platform provides investment management services through
an electronic interface but does not provide the user with Annex’s full suite of comprehensive financial planning
services; nor does the user have one-on-one access to all of the professional services of the Annex Wealth Management
Team. Ignite is powered by many of the industry-leading technology platforms enlisted by Annex Wealth Management
and therefore, Ignite is the branded name of a modified offering of Annex’s full-service platform. Annex will market
Ignite under its unique brand name “Annex Ignite” as listed on Annex’s Form ADV Part 1 Schedule D as an additional
name under which Annex conducts its advisory business. More information about Ignite can be found by accessing
www.annexignite.com.
Annex Comprehensive Wealth
Annex Comprehensive Wealth is a comprehensive, full-service model in which each client relationship is
handled by a primary wealth manager. In Annex Comprehensive Wealth, the wealth manager works in collaboration
with the wider team for financial planning, tax planning, and estate planning. More information about Annex
Comprehensive Wealth can be found by accessing Annexwealth.com.
Annex Private Client
Annex Private Client is a full-service model primarily tailored toward the unique and complex needs of a high-
net-worth relationship with typically more than $5 million dollars in investible assets. Annex Private Client includes all
aspects of Annex Comprehensive Wealth plus access to our dedicated team of specialists for additional assistance
related to advanced topics including philanthropic, legacy planning, and complex investment management needs. More
information about Annex Private Client can be found by accessing Annexwealth.com.
Tailored Relationships
Annex tailors its advisor services to the individual needs of each of its Clients. Each Client is relied upon to provide
Annex with accurate information regarding their investment portfolio and financial situation. Information Annex
considers in tailoring individual advisory services would include the Client’s financial condition, investment objectives,
tolerance to risk, investment timeframe, liquidity needs, and tax status. All of Annex’s recommendations will be made in
reliance of the information provided by the Client, and the Client is responsible for ensuring that the information
provided to Annex is complete and accurate. The information provided by the Client will be retained in the Client’s
electronic and secured file and will be updated whenever the Client informs Annex of changes to the information and/or
as a part of periodic Client reviews.
Annex performs advisory services for other Clients and it will give advice or take actions in other Client’s accounts that
will likely differ from the timing or nature of actions it takes in another Client’s account(s). Clients are free to impose
restrictions on the management of their account(s). Contracts for advisory services cannot be assigned by Annex
without the Client’s affirmative consent.
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Sub-Advisory Relationships
Annex may also provide services to other investment advisory firms, whereby Annex acts as sub-adviser to
Clients of the other investment advisor. As a sub-adviser, Annex is hired by the other investment adviser, but applies
the same strategies to the other investment advisor’s Client accounts as it would to individual Clients of Annex. Annex is
typically paid directly by the other investment advisor from the advisory fee collected by the other investment advisor.
Annex has no contact with the other investment advisor’s Client but does regularly consult with the other investment
advisor regarding sub-account objectives and account performance.
Alternative Investments
Annex may provide investment advice with respect to Alternative Investments. Annex’s role relative to the
alternative investments shall be limited to its initial and ongoing due diligence and investment monitoring services. If a
client determines to become an investor in alternative investments, the amount of assets invested in the investment(s)
shall be included as part of “assets under management” for purposes of Annex calculating its investment advisory fee.
Annex clients are under absolutely no obligation to consider or make an investment in an alternative investment.
Alternative Investments include illiquid investments such as private real estate, private debt, private equity, and others.
Alternative Investments selected for recommendation need to meet several quantitate and qualitative criteria
established by Annex as described in item 8. Annex will recommend Alternative Investments based on the investment
objective and risk tolerance of the client and only to those clients that meet the definition of Accredited Investor. Annex
will assist the client in completing the necessary subscription agreements and will work with the client to facilitate the
funding of alternative investments recommended by Annex.
Please Note: Alternative investments generally involve various risk factors, including, but not limited to,
potential for complete loss of principal, liquidity constraints and lack of transparency, a complete discussion of which is
set forth in each investment’s offering documents, which will be provided to each client for review and consideration.
Unlike liquid investments that a client may maintain, alternative investments do not often provide daily liquidity or
pricing. Each prospective client investor will be required to complete a Subscription Agreement, pursuant to which the
client shall establish that he/she is qualified for investment in the investment and acknowledges and accepts the various
risk factors that are associated with such an investment.
Please Also Note: Valuation. In the event that Annex references alternative investments owned by the client on
any supplemental account reports prepared by Annex, the value(s) for all investments owned by the client shall reflect
the most recent valuation provided by the investment sponsor. If no subsequent valuation post-purchase is provided by
the investment sponsor, then the valuation shall reflect the initial purchase price (or a value as of a previous date). If the
valuation reflects the initial purchase price (or a value as of a previous date), the current value(s) (to the extent
ascertainable) could be significantly more or less than the original purchase price. The client’s advisory fee shall be
based upon reflected investment value(s).
Cash Positions
Annex continues to treat cash as an asset class. As such, unless determined to the contrary by Annex, all cash
and cash equivalent positions (money markets, etc.) shall continue to be included as part of assets under management
for purposes of calculating Annex’s advisory fee. At any specific point in time, depending upon perceived or anticipated
market conditions/events (there being no guarantee that such anticipated market conditions/events will occur), Annex
may maintain cash positions for defensive purposes. In addition, while assets are maintained in cash, such amounts
could miss market advances. Depending upon current yields, at any point in time, Annex’s advisory fee could exceed the
interest paid by the client’s cash position.
Cash Sweep Accounts. Account custodians generally require that cash proceeds from account transactions or
cash deposits be swept into and/or initially maintained in the custodian’s sweep account. The yield on the sweep
account is generally lower than those available in money market accounts.
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Managed Assets
As of July 31, 2023, Annex Wealth Management® managed approximately $4,833,150,360.81 in assets for more than
8,500 Clients. $4,641,902,413.02 is managed on a discretionary basis and $191,247,947.79 on a non-discretionary basis.
Our Clients are individuals (65% of our Clients), high net worth individuals1 (34% of our Clients), pensions (1%), charitable
organizations, government agencies, and corporations.
eriodicals and Publications
Annex may distribute reports, newsletters, white papers, articles, workshop announcements, or other items of interest
to Clients and prospective Clients through various means, such as the US mail, email, electronic media, social media, or
by posting them on one of its websites. Annex does not charge any fee for any periodical or publication, nor any
workshop or other public presentations.