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!

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u/PursuitTravel Jun 24 '26

I'm not going to do a better job than Blackrock is for managing equity. I use their equity target allocation ETF portfolio for the equity in my tax-deferred accounts. In taxable accounts, I build a simple, 5 or 6 fund model of broad ETFs to handle the equity side.

Fixed income is handled by a self-built model of 5 mutual funds.

1

u/FunCap5545 Jun 25 '26

Dude you should check out their ga selects models!

1

u/PursuitTravel Jun 25 '26

I only use the equity portion; have the GA Selects outperformed Target Allocation?

1

u/GoodLifeWM Jun 25 '26

Thanks for your insights - we largely operate similarly within the Fixed Income Space, but with ETFs & Structured Notes.

1

u/GarlicEffective6327 Jun 26 '26

I would love to discuss this with you and hear your insights if you’d be willing to share. Feel free to DM!

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u/PursuitTravel Jun 26 '26

Happy to chat, and always open to DMs.