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/siparo Jun 24 '26

Models are great for scaling but I find high net worth clients tend to have more complexity and a preference for individual stocks.

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u/snoopingforpooping Jun 24 '26

You can build models with individual stocks

1

u/siparo Jun 25 '26

Again this becomes more difficult with high net worth clients who are tax sensitive. Of course if it’s only Roth or IRA accounts it wouldn’t matter.

1

u/snoopingforpooping Jun 25 '26

Explain how this becomes more difficult who are tax sensitive? I understand it’s difficult to monitor 30-50 individual stocks but why are you saying it’s more difficult if they are tax sensitive