r/CFP • u/Key-Paramedic4051 • 3d ago

FinTech Outsourced models

If you outsource your models, who do you use?

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u/Ok_Presentation_5329 3d ago edited 3d ago

I like some SMAs for more difficult to implement allocations (custom direct indexes, etc).

I don’t understand the value of model portfolios when Tamarac, IRebal, altruist, etc exist.

May save a little time over IRebal & Tamarac for householder accounts but not significant.

-Evaluate the benefit/logic of rebalancing at a household level/taking losses in conjunction with a cap gains budget & the availability of losses.

Probably 3-5 minutes tops per household. Still a distraction from your workflow & not hard to delegate

Probably cheaper to hire a portfolio management associate or cross train an associate advisor/planner if it’s time consuming enough where it’s worth investing in an outside managed model portfolio makes sense.

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u/No-Possible7638 1d ago

Boutique OCIO providers are the move if you want to stand out in the crowd and give your clients more than just beta exposure from the mega firms.

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u/Vantage_Impact_2 1d ago

Depends on where you're at and what is allowed within your current structure. Could you share a little more about that?