As a retired, original LP owner I am wondering why the most obvious question was not addressed.
How will this change affect annual payout percentage, for original owners, in the future. We have enjoyed an average 20% for many, many years. Will that most likely be reduced.
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The firm is preparing to go public. Trying to make the balance sheet look better, so the IPO can have a better price. We set an unrealistic goal of 4 trillion in AUM by 2030, and when we don’t hit it, our only option to “save” the firm will be to go public.
The only reason we are still afloat is due to the fee based accounts we push constantly. If you open up a select account, you are looked down upon by leaders, and other brainwashed folks. Why do you think they changed the making good choices pamphlet . All geared towards fee based accounts.
Is there a way for retired LPs to see the details of the announcement? I’m wondering how it impacts us. Is there an email or video available?
These are money games to try to keep FA from leaving. FAs want ownership of the client relationship, control over how they run their branch. The bleeding will continue. We have to fix our FA model.
@b0 Good lord, DC is a tool.
@az There is an article regarding the announcement on Advisorhub.com “Edward Jones Expands Partnership Levels, Alludes to Capital Raise”. In the article there is a link to the amended partnership agreement. I find it interesting that DC is the spokesperson for the article, not PP.
@av I am concerned about this too as I will be retiring in 2026. They discussed the 3 options for Class A (leave it as is, partial $ for $ to class b or full conversion to class b). They did not mention any payout other than the 7.5%. We are to get the offer to exchange in fall of 2026 so hopefully they will clarify before then.
Yes that is the information I heard in the meeting but it does not address my concern. There has never been a guarantee regarding payout percentages above the 7.5. Perhaps I did not word my concerns clearly. It seems to me the class B ownership will lower the class A payout percentage (over the 7.5% guarantee) which has been about 12.5 over the guaranteed 7.5 for years and years. Since this was not mentioned in the meeting I’m extremely worried that my concern is probably correct and when that happens the new mantra will be “additional payout over 7.5% has never been guaranteed “.
Hopefully the firm has not decided to reduce retirees’ money with our only recourse being to take a gamble and transfer to B shares. Gambling is not a good word for retirees. This would be one more way for those in power to stick it to older “Ted Jones” former employees. Aren’t any other retired lps worried about this? Common sense tells me class A will never receive over 7.5%. Class B will take it.
@ab Penny has definitely led this once great firm into the dumpster and she is currently setting it on fire.
Honestly, I really believe in what we’re doing, but I’m starting to wonder if our clients feel the same way. For the first time in over 100 years, we’ve seen more money flowing out than coming in while our competitors are seeing record inflows. I can’t help but ask how much of our recent Level 10 Bonus was due to market growth. On the bright side, we've got a year to figure out if we want to buy in.
Your original LP interests (now referred to as Class A interests) will keep the 7.5% monthly guaranteed payment with additional profits distributed periodically. If the communication is to be trusted, nothing should significantly change for the Class A interests. These original Class A interests can be converted, in part or in whole, to Class B interests on a dollar for dollar basis.
The new LP interests to be issued (Class B interests) will have no guaranteed payment but are intended to distribute 10% monthly, adjusted for profitability, with periodic payments which may exceed the annualized return of the original Class A interests.
Big difference here is that Class B interests could return $0 if the firm is not profitable -- similar to the investment risk of retail investments. Given the track record of firm performance, I don't see a lot of downside to the Class B interests but there is still too many unknowns to know for sure.
As disenchanted as I am with firm leadership, I still believe in what we do, and will still continue to increase my LP stake in the company.