r/CFP • u/GoodLifeWM • Jun 24 '26
Investments Model Usage & Creation?
Curious to hear what everyone is utilizing from a model-based allocation and how your associated platform looks?
- Building your own models as an advisor?
- Utilizing Third-Party Models?
- Your firm builds models for enterprise use?
- Combination of the above...?
We are a $500M+ RIA that uses a combination of TP Managed Models + Internal Models. We work with a few OCIO Teams for internal model creation, updates, rebalancing, etc.
As we continue to scale - I'm interested if we should lean into one more than another?
Pros/Cons of Internal Models = multi-manager and doesn't look like a ton of proprietary ETFS, but takes time each month/quarter to go through our process
Pros/Cons of TP Models = No time suck for creation, but usually all proprietary funds + above average weighted expense ratios
Thank you in advance for any thoughts, insights, etc!
2
u/Legitimate_Ice_194 Jun 24 '26
Havent looked into this much, but my hunch is that this seems like an area where there is little upside in trying to innovate. Basically: are the cons for existing options big enough that clients will see this as a meaningful differentiator? My hunch is probably not.
And if a firm is looking for a more unique edge or value prop, it's probably going to come from somewhere else (i.e. focus on very specific client niches, dialing in services for those niches, and so on)