Cabot Wealth Management is a financial advisor firm based in Salem, Massachusetts, with over $1 billion in assets under management. Founded in 1983, the firm has been in business for more than 40 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 10% of the firm. Director of wealth management Jim Gasparello, president Greg Stevens and manager of trading and operations Sonia Ernst each own 20%. Tom Vautin and chief investment officer Craig Goryl each own 10%. Tyler Swaim and Patrick Creahan each own 5% stakes. 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 approximately 650 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 $1.5 million. 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 constructs investment portfolios based on each client’s individual needs, including their investment objectives, risk tolerance, time frame, and other financial planning considerations. Portfolios typically include a mix of individual stocks and bonds, mutual funds, and exchange traded funds. The firm’s equity strategies incorporate both U.S. and foreign securities.
Investment decisions are informed by both fundamental and technical analysis. Cabot Wealth Management provides ongoing monitoring of client holdings and may adjust asset allocations based on the investment policy established with each client.
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.
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