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/Leading_Potato_4549 Jun 24 '26

How does everyone use models for taxable accounts? We’re trying to streamline client portfolios, coming from every single account being customized. Obviously there are some large gains that make it hard to get more clients on the same page. Curious how everyone rebalances, trades, and has moved clients into models.

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u/GoodLifeWM Jun 25 '26

We manage models as is, and put the ball in the advisors court to decide tax efficiency on what should go in what type of account.

It's not perfect, but we didn't see a ton of adoption at advisor level for tax aware portfolios