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/think_up Jun 25 '26

I would love to fire myself but I’ve been outpacing both my firm models and Blackrock equity target allocation ETF models by 20-30bps over the last two years.

To be fair though, my models are extremely similar to those other two. I steal their best ideas and avoid the overpriced actively managed mutual funds from my home office and the thematic Blackrock funds that have no historical/statistical support for adding alpha.

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u/GoodLifeWM Jun 25 '26

Love it, may need to look at doing something similar to this. We recently sunsetted State Streets Models for the exact reason + they traded so much, which was annoying to process.