Cabot Wealth Management is a financial advisor firm based in Salem, Massachusetts, with millions in current assets under management. Founded in 1983, the firm has been in business for more than 35 years. You’ll need at least $500,000 in order to work with a Cabot advisor, and you’ll need triple that to receive tax preparation services. The firm primarily works with high-net-worth individuals.
Cabot Wealth Management Background
Cabot Wealth Management was founded in 1983 by Robert Lutts, who still owns 35% of the firm. Director of Wealth Management Jim Gasparello, Senior Wealth Advisor Gregory Stevens and Manager of Trading and Operations Sonia Ernst each own 20%. Senior Financial Planner Tom Vautin owns 5%. The firm offers wealth management services to a mix of high net-worth-individuals, non-profits and other charitable organizations.
Cabot Wealth Management Types of Clients and Minimum Account Sizes
Cabot Wealth Management provides services to 645 clients. The overwhelming majority of its clients are high-net-worth individuals, and the rest are charitable organizations.
In order to open an account with Cabot Wealth Management, you’ll need a minimum of $500,000 in assets. If you’re wishing to qualify for tax preparation services with the firm, you’ll need at least $1,500,000. Cabot Wealth Management can choose to waive these minimums depending on the specific situation, however.
Services Offered by Cabot Wealth Management
Cabot Wealth Management offers a wide range of services to its clients, split into four broad categories. They are as follows:
- Portfolio management
- Asset allocation
- Alternative investments
- Risk management and diversification
- Wealth management
- Estate planning
- Financial planning
- Retirement planning
- Tax preparation and planning
- Corporate counseling
- Business succession
- Workplace financial education workshops
- Retirement plan management and counseling
- Trust and endowment planning
- Non-profits
- Pension plans
- Asset management strategies
- Assistance with tax reporting
Cabot Wealth Management Investment Philosophy
Cabot Wealth Management adopts a tailored approach to each individual client, factoring his or her risk tolerance, timeframe and goals into the equation when making investment recommendations. Cabot chooses to ground its recommendations in long-term potential rather than tips or hunches. Your advisors will approach asset allocation with consistency and discipline, using quantifiable research to come up with an investment strategy and sticking to it.
Fees Under Cabot Wealth Management
For asset management services, Cabot Wealth Management generally charges its fees on a quarterly basis and in advance. All fees are subject to negotiation at the firm’s discretion, but they will usually adhere to the following schedule:
| Assets Managed | Fee Rate |
| Up to $1,000,000 | 1.25% |
| $1,000,000 - $2,500,000 | 1.00% |
| $2,500,000 - $5,000,000 | 0.85% |
| $5,000,000 - $10,000,000 | 0.75% |
| Above $10,000,000 | Negotiable |
The specifics of your fees, like your exact fee rate and when you’ll pay, will be spelled out in a written agreement with the firm. The below table shows how Cabot Wealth Management's fees compare to the national median. Remember that these are only estimates and actual fees may vary.
| Estimated Fee Comparison at Cabot Wealth Management* | |
| Your Assets | Cabot Wealth Management Maximum Fee Amount |
| $500K | $6,250 |
| $1MM | $10,000 |
| $5MM | $37,500 |
| $10MM | Negotiable |
| *Estimated investment management fees do not include brokerage, custodial, third-party manager or other fees, which can vary in amount. | |
Learn more about advisors' typical costs here.
What to Watch Out For
On occasion, Cabot advisors will recommend external brokerage or custodial accounts to clients, typically with Charles Schwab or TD Ameritrade. While Cabot isn’t affiliated with either of these firms in any official capacity, Cabot can still occasionally benefit from the informal relationship that arises from frequently recommending these firms, either through access to industry conferences or professionals. These benefits create an incentive to continue recommending these firms, which in turn may create a potential conflict of interest.
Despite any potential conflicts of interest, Cabot Wealth Management is bound by fiduciary duty, which means that it is legally obligated to act in its clients' best interests in all matters.
According to its latest SEC-filed form ADV, Cabot Wealth Management does not have any disclosures.
Opening an Account With Cabot Wealth Management
If you’re looking to start a relationship with Cabot Wealth Management, you can head to the firm’s website contact page. You can also call the office at (978) 745-9233 to schedule an initial consultation.
All information is accurate as of the writing of this article.
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