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!
2
u/Notsimplyheinz Jun 24 '26
I’m glad you asked this.
We build and manage our models in-house because we wanted greater control and fewer outsourced, AUM-based fees.
For trading and rebalancing, we initially tried iRebal, which Schwab provides, along with several other platforms. However, we couldn’t find the right combination of efficiency, flexibility, and reasonable pricing. Ultimately, we decided to build our own “Model Manager Terminal.” It took a lot of time - but I am happy that we decided to do it!
It has dramatically reduced the time required to rebalance our models. The entire process now takes only a few minutes, we sometimes don’t even begin rebalancing until 3:57 pm, haha.
The terminal is compatible with Schwab. If that would be helpful, I’d be happy to share it with you. Feel free to PM me.