Time for the trimester update!
Predictions:
What do you predict?
Yes, she certainly felt me (up), in the elevator. I'm suing.
@z3 I'm not surprised. I guess we have to do something to keep the angry FAs happy after last year. We set a record with almost 1500 of them leaving in 2025. We claim to have replaced all them and the added some additional ones, but that supposedly was just BOAs getting licensed. The people doing the stats and reporting around here would make Enron blush.
The majority of the LP will be going to the field. For years FAs have not received the same ratio of capital and since ‘22, our MP has continued to pi-s off the profit center - the record amount will be for retention purposes. I work in HC and the firm will be giving lower capital offers to HQ than the previous 3 offerings.
@as yes, put the hay we don’t have in the barn. It’ll be interesting to see if how they’re gonna raise the amount of money. They think they’re going to raise and what they need to raise for the next LP. I have no interest in.”B” shares.. what a farce.
@hm I know they have stated that it is the Prime Rate minus a fixed 1.3%. Prime rate as of April 2026 was 6.75% so the LP Loan Rate was about 5.45% for April 2026.
But you are still totally right that for this to be worth it, the returns need to be much higher. I mean if I think about the S&P500, I would want the returns of this LP to be around 15% (to get around the 10% historical returns of the S&P).
With that all in mind... I don't have any confidence that this will consistently yield 15% returns.
Flip scenario: I don’t think I can buy even if I wanted to. Say they offer $40,000 in LP, and I take a loan against it at 7–8% interest. Here are the concerns:
1.Job security: Earlier at least had job security, now they could kick us out any time, and it would take 6–8 months to get the LP back. Would I still be paying interest on the loan during that gap, without a job?
2.Downside case: If returns come in at zero, the 7.5% guaranteed return is gone, but I’m still paying a high interest rate on the loan with peasant salaries where I barely make ends meet.
The only scenario where this is a good buy is if they don’t fire me and returns exceed 8%. Is my calculation off here?
@eq they do but their insane returns / distributions has their loans paid off in 2-3 years vs. 6-7 for LPs
GP capital gets paid zero, but I suspect they buy it like we do- earnings apply towards debt. Look at some of them- did they really have $1-5M to make the purchase? upon retirement, GP capital is converted to LP, and the cash begins to flow...
@b6 you need to educate yourself on retired GP capital. They’re forced to sell out a vast majority of and what they’re able to keep is converted to SLP which will match the returns of the class B LP returns. I don’t disagree with the thinking but there’s a lot of bad information being thrown around on here leading to people being unnecessarily more miserable than they already were.
@b6 65-70% GP capital returns past few years. CFO shared last year theyre going to eventually cap GPS at 50% since its gotten so out of hand
It’s somewhat comforting to reminisce about the past when JW was MP and everything was peachy keen. He was a straight sho-ter that we could trust and he carried on Ted’s legacy in a very admirable way. We now have to deal with the reality of today and how we got here. How did PP get to where she is now and who brought her here? (That’s a rhetorical question by the way) Retired GP’s are still on the partnership gravy train in a first class seat and will do whatever they have to do to keep it chugging along. 40% to 50% annual returns on millions of dollars doesn’t su-k. They kind of like those numbers and JW is no different. He was called away from his Ferrari museum to give us his unbiased opinion on what a great investment LP is and that we should be grateful to have this opportunity to make our futures secure. Whose future? Times sure have changed. How about leading by example and convert 20% of your partnership capital into the new and awesome LP shares? If all the GP’s were to follow suit then maybe this might get some traction but, in the meantime, I’ll keep my money in ICA. I bet Ted would too.
@a8 Jim is a genuine man. I wonder how against his own ethics and morals it takes him to remain with the Edward jones brand with the way things are now. We all know Ted and Pat are rolling in their graves… Jim has to be bothered by it all too
I plan to turn down the LP offer on the basis that RTO is costing me several hundred dollars per month in gas to commute to the office 4 days per week.
Thanks but, no thanks.
Better put some hay in that burning barn.
In all seriousness - PP’s comeuppance will come once either the SEC/FINRA, the legal/criminal system, or karma comes knocking. Lotta things occurring that would not pass regulatory scrutiny nor the legal woes she created from her mandated discrimination policies she implemented when she first started to the messes of today. Apparently EJ attorneys are very good at NDAs.
PP and her ELT cronies are such d-mb a--holes. Bringing Weddle in to peddle the LP offering is such a desperate move. We can clearly read between the lines. They had to bring in “someone the peasants trust” to get more traction.
Fu-k you and fu-k your LP offering. I’m not buying in to this dumpster fire.
If they seriously expect people to buy into LP, they’d better offer 0% loans spread over ten years. Half my coworkers are already working second jobs just to keep their heads above water, and somehow management thinks people have extra money lying around for this. This place is a joke. Every time they promise to review the pay grades, they turn around and fire another 400 people.
Okay, my takeaway. They must be really desperate for more LP buy ins. They brought out Weddle to make the sales pitch because the existing MP is toxic. Sorry PP, we no longer trust the "brand". You destroyed all the trust for a quick sugar high of profit and left a wake of destruction. Now you need JW to come bail your a$$ out on the PR front. We all miss JW, and this meeting was another sober reminder of what we once had.
At least Jim is genuine. Miss that guy.
@a6 Class B variable LP. They use this revenue to fuel their business model. It’s a commercial.
These meetings are such a waste of time. Literally nothing of use is being said. I really don't get it. All of these big meetings are like this. I have no confidence in this LP offering.
They must really be afraid people will not buy into the partnership. They had to bring in Jim Weddle to sell it. Make no mistake, this trimester update is all making a sale to the associates. They are selling the LP as this great, big benefit but in reality, they are asking everyone to give them money. Give them money to spend spend spend on more high-priced consultants that will offer more recommendations that hurt the people working at Edward Jones and line the pockets of the ELiTes. Limited Partnership is a CASH COW. The Scrooge McDucks running the firm will be rolling in their vaults.
Playbook - Underpay your associates, give them a sliver of limited ownership, tell them they’re “owners” and hope they don’t notice!
Jim Weddle is a 1000x better leader than PP could ever be.
LP is nice but paying associates a fair wage with decent annual raises is more important. LP earnings are tiny compared to an associates total compensation and they expect us to act like owners.