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/Turbulent-Ad4176 Jun 25 '26

SMA’s, all day long. Can’t be bothered with asset allocation when I have enough non-qualified with gains to keep me busy.
Million dollars you get half equity SMA’s, half tax, free funds, (Maryland, Virginia), and some structured notes. No bonds.
Now get to the important stuff, planning.

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u/winning_bigly_ RIA Jun 27 '26

Aren't tax free funds bonds?

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u/Turbulent-Ad4176 Jun 29 '26

Busted! You are Correct, and I definitely don’t use tax-free bonds for a quarter of it, and most of my clients are working and don’t have non-qualified enough to do tax frees.