Cabot Wealth Management is a financial advisor firm based in Salem, Massachusetts, with 627 clients and roughly $650 million in assets under management. Founded in 1983, the firm has been in business for more than 30 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 70% of the firm. Director of Wealth Management Jim Gasparello, Senior Wealth Advisor Gregory Stevens and Manager of Trading and Operations Sonia Ernst own the remaining 30%. The firm offers wealth management services to a mix of high net-worth-individuals, non-profits and other charitable organizations. In its 35 years in business, Cabot has grown to hold more than $650 million in assets under management.
What Types of Clients Does Cabot Wealth Management Accept?
Cabot Wealth Management provides services to 627 clients. The overwhelming majority of its clients are high-net-worth individuals, and the rest are charitable organizations.
Cabot Wealth Management Minimum Account Sizes
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
- 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%|
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*|
|Your Assets||Cabot Wealth Management||National Median Advisory Fees**|
|$1MM||$10,000||$8,500 - $10,000|
|$5MM||$37,500||$25,000 - $32,500|
|*Fee estimates only consider the maximum base fees for the services each firm provides. You may also pay manager fees and other fees, which can vary in amount. **All figures are based on median fee levels according to Bob Veres' 2017 Planning Profession Fee Survey. The above estimates solely take into account AUM-only fees. Total costs will likely be higher due to additional expenses.|
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 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’ll want to live within driving distance of the firm’s office in Salem, Massachusetts, since some face-to-face interaction will most likely be necessary throughout the course of the relationship. You can reach out to the firm in a few different ways. You can head to the firm’s website and click on the Contact Us tab in the upper-right corner to either contact an advisor or request more information about the firm. You can also call the office at (978) 745-9233 to schedule an initial consultation, or if you prefer, you can visit the office to make an appointment as well.
Where Is Cabot Wealth Management Located?
Cabot Wealth Management is located in Salem, Massachusetts, on the corner of Essex Street and Washington Street.
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