There's been a lot of discussion about EJ potentially going public or being acquired.
I don't want to spark a debate on whether it will happen, can happen, or if it should happen.
I'm just curious about what will happen to the LPs? This was one of the benefits many of us were relying on for our retirement.
11 replies (most recent on top)
@ca LP never converts to SLP, only GP does. LP remains LP and you can keep it if you meet the rule of 70, otherwise you get the cash value back when it’s cashed out.
Edward Jones is a five billion dollar company while US Bank is a seventy-five billion dollar company.
I've never heard of this site before ER. I've seen talk about being bought out by US Bank or someone else. My question. Is that even possible? We have trillions of dollars under care. We are a profitable company and cash making machine. One of the few private companies in the Fortune 500 list. I am not sure if US Bank could even buy us out. Also why has that been the speculated company? Does another company have the resources available to even absorb EJ?
Some commenting here either don't have a Jones LP or know how one works. If you have an LP, they are required to buy 100% back when you leave. It's not a 401k, there isn't a 'share price' and there is nothing to 'tank'. If you still have a balance on a portion of your LP, then you get back all the capital you paid off. For those that retire or optioned the VSP, they will offer to convert the LP into an SLP where you continue to profit from the interest but are not eligible for future offers. Some retirees that had been at the firm for a long time can easily have over $100k individually in SLP. LP/SLP has a guaranteed 7.5% return monthly, that has been averaging about 20% historically. You can see why some would be concerned, because that can be a reasonable amount of reliable income. Rumor has it that those who get the ISP will be offered the same SLP deal. Legally if EDJ would ever sell out to someone, they are required to purchase back all the LP/SLP. Dunno what happens with GPs because their partnership isn't protected in the same way. Good luck everyone.
There are a few things that can happen to your LP if Jones goes public. The most likely are:
The partnership agreement will be amended to outline an exchange/conversion. I.e., your LP will convert to shares of the newly public company.
A liquidity event occurring which LPs are bought out, either partially or fully.
In any event, you will likely have a lock up period that prevents the sale of your shares for a certain time period.
concern about 401k is a lack of knowledge. If anything happens to edj you roll it over. nobody owns partnership in 401k. there are no private assets in our 401k. that is ibly subject to mkt volatility.
@OP, I'm not relying on my LP for retirement. One has to understand some LP may not have a lot of money due to the offering size received. Ie if one was offered $5k, that's not considered a "retirement " fund. I'd be worried about the 401k instead.
@a6 your LP carries a cash value, as well as a guaranteed interest rate pay out. It cannot tank in value unless EJ goes bankrupt. Sit tight...
you get capital back minus loan. they do not have to give you anymore.
That is a great question and I’ve been wondering that myself. If the value of my LP is going to tank, I should cash it out now.
Before: LP = Limited Partner
After: LP = Lost Possibilities