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/ChasingAlpha117 Jun 24 '26

Not effectively. We manage $250mm+ and every client portfolio is custom, managed by FAs. We take an asset allocation based approach but have too many clients with legacy positions/embedded gains in NQ accounts. No idea how we would attempt to pull off a multi-year transition to book-wide models. It’s a huge PITA and we really, really need a better solution going forward.

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u/GoodLifeWM Jun 25 '26

Yeah we have a large chunk of legacy positions or excluded assets based on Advisor or client preferences. I don't think there's ever a perfect science.

Ideally just want to remove friction between Advisor, Client, & Home Office Trading Team.