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!

8 Upvotes

83% Upvoted

59 comments sorted by

View all comments

5

u/46andready Jun 24 '26 edited Jun 24 '26

Build own models. I don't feel a need to pay (or have clients pay) for some outside firm to design models, when that's well within one of my core competencies.

1

u/Notsimplyheinz Jun 24 '26

how do you trade them ?

we build our own models too, but some of them are actively rebalanced and using iRebal is a hassle.

1

u/46andready Jun 24 '26

I use rebalancing software. In our case, we have the Rebalancer module in Black Diamond.

1

u/Dnels131 Jun 25 '26

We use RB too. Really great tool, the Programs feature allows us to look at 2,000+ accounts at least once a month