Part 4: Personalizing the ModelPart 4: Personalizing the Model

Advisors who want to provide their clients with a reactive and personal approach to allocation models often consider modifying the allocation models provided by home offices. Only 9% of advisors rely on their teams to select the models for them. By comparison, one third take the models under advisement, while another third make their decisions independent of the models. Not surprisingly, RIAs are more likely than others to make allocation decisions independent from the models. 

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Personalization takes time, however. There likely comes a point when personalizing the model becomes too time consuming for an advisor who has successfully grown his or her practice. “As an advisor’s practice expands, time compresses along with the profit margin on their effort to individually select securities for each and every client,” Wilkinson says. “It is not about the technology or the platform, itself; it is about freeing time for the advisor to build relationships, deepen their understanding of client goals and more effectively run their wealth management practice.”