Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right
Tap on the profile icon to edit
your financial details.

Cabot Wealth Management

Your Details Done
by Updated

This review was produced by SmartAsset based on publicly available information. The named firm and its financial professionals have not reviewed, approved, or endorsed this review and are not responsible for its accuracy. Review content is produced by SmartAsset independently of any business relationships that might exist between SmartAsset and the named firm and its financial professionals, and firms and financial professionals having business relationships with SmartAsset receive no special treatment or consideration in SmartAsset’s reviews. This page contains links to SmartAsset’s financial advisor matching tool, which may or may not match you with the firm mentioned in this review or its financial professionals.

Cabot Wealth Management is a financial advisor firm based in Salem, Massachusetts, with millions in 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 20% 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 and chief investment officer Craig Goryl each own 10%. The firm offers wealth management services to a mix of high-net-worth individuals, nonprofits and other charitable organizations.

Cabot Wealth Management Types of Clients and Minimum Account Sizes

Cabot Wealth Management provides services to more than 600 clients. The overwhelming majority of its clients are high-net-worth individuals, and the rest are charitable organizations. The firm currently does not work with any individual clients below the high-net-worth threshold.

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 two primary categories: 

  • Portfolio management
    • Diversification across different asset classes
    • U.S. and foreign equities
    • Risk management
    • Third-party manager recommendations
  • Wealth management
    • Estate planning
    • Financial planning
    • Retirement planning
    • Tax preparation and planning

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 stick to it.

The firm strives to diversify portfolios across various asset classes, incorporating both U.S. and foreign equities, as well as high-quality fixed-income securities. The firm also looks to manage risk by avoiding overconcentration or relying too much on a single sector or asset type.

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 $1MM 1.25%
$1MM - $2.5MM 1.00%
$2,5MM - $5M 0.85%
$5MM - $10MM 0.75%
Above $10MM 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. Cabot is also a fee-only practice, meaning its advisor don't receive additional compensation like sales commissions when recommending securities or insurance products. 

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 or (800) 888-6468 to schedule an initial consultation. 

All information is accurate as of the writing of this article.

Tips for Finding a Financial Advisor

  • Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
  • A financial advisors' certifications can often indicate an advisor's area of expertise and level of experience, so be sure to consider them. For example, if you need an investment advisor, look for a certified financial planner (CFP) or a chartered financial analyst (CFA). If you're concerned about tax planning, consider an enrolled agent (EA) or a certified public accountant (CPA).

How Long $1mm Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology We analyzed data on average expenditures for seniors, cost of living and investment returns to determine how many years of retirement a $1 million nest egg would cover in cities across America.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research