Anyone else have doubt about investing in LP in 2027? I’ve been looking forward to it but now I’m not sure I’m comfortable putting my money in.
How do I know it won’t be wasted or used to further compensate already wealthy GPs? LP has worked out great for associates in the past but part of me thinks it’s a trap.
@er Ill informed click bait. Guarantee has gone down but expected return should go up. Guaranteed 20% is ludicrous and limiting. To answer OP question. Is guaranteed 7.5% with likely total including variable of 20-25 with the firm loaning %80 of initial down payment still a good idea?… no sounds terrible I think you should quit and find a better offer, I’m sure they’re out there.
@f7 I wouldn’t come here for career advice. You should talk to others on your team or a leader to learn more about the LP. There’s also plenty of information on it on the LP page.
@ev I never got offered an LP, so Im not familiar with the details. How many units are usually offered to associates? Are you suggesting that those in the LP will become millionaires with this structure, or only those at the top who have substantial units?
Curious if I should be trying to stay or go... Feels like go, considering I have no LP anyway but they say they're going to offer them more frequently...
@br , LP payout which is done in February and normally October at a high ROI.
@eg if you read between the lines, the A shares (units) will get 7.5%, and the B's will get more, thus incentivising holders of A's to convert to B's to get more income. Then, they'll sell $1.5 billion in B's (quite possibly to the public), and then have to reduce the payout %. In the end, the partnership units will be diluted. If you're a FP with 10,000 units selling at $300 per unit, you'll be in tall cotton...
@OP The new LP proposal severely negatively impacts all owners of the existing LP. Cutting annual income from the usual 20% to 7.5%. Current owners must decide to take the cut or take a scary risk to transfer to the new, no income guarantee, greatly diluted LP. Sounds great doesn’t?
There is an article in AdvisorHub which tells how much $$$ EJ is going to raise by offering this new LP.
@bx They’re talking about the year-end LP payout which hits Friday. This year (similar to prior years) it had a >23% return. Much higher than you’ll likely see from an index fund, which FAs can sell. I think the person below is confused with indexed annuities. And also confused about the variable returns on top of the guaranteed 7.5% (not 7%) return. So confused that they probably don’t even work at Edward Jones.
@br That person is VSP or ISP and separating. The next/last group is May.
@bf what payout?
@as, you're correct. I've heard some folks think the LP buy in is a scam. Personally, I can't wait for Friday payout. Cha ching!
@ag objectively speaking, this comment lacks intelligence all around.
It could be a good payout when/if they sell or merge, but a very speculative investment.
@ag you hq FA certainly will let you buy an index fund.
I would be willing to stake a large sum that the new shares will not beat the old shares 7% guarantee. I would say your better off investing the money in an index fund, but I'm guessing that the home office FAs won't let you invest in one.