What's up with this $1.2 billion offering? Where does the money go? This is the first time I've been eligible for LP and none of this makes any sense. No projections? No baseline roi expectations? No specified purpose for raising the funds?
A five figure decision should have answers to these questions. Why would I invest in a company that can't provide any answers about that investment?
My GP presented this LP like a fa-t in church.
@1c7 , please read. https://www.advisorhub.com/edward-jones-to-let-partners-swap-share-classes-ahead-of-1-4b-capital-raise/
@1c5 I have not heard anything about layoffs coming in 2027. Are you assuming based on the GCC hub being built in India?
@OP 24% return is why you should do it!
Very good commentary throughout this thread but after 17 years, I’ll be turning down the offering. The ability to partake in LP was all about the balance - we pay and good returns with the sharing philosophy that was our ethos. Since Penny took over and created her own philosophy, the stability and sharing is gone. At the end of the day, I’m not going to go through the hoops when 2027 looks to be the most brutal layoff year yet with 30% home office being gone and the majority will be HBA. She now can have her cake and eat it too.
@y3 Replying to say I’m in a similar position with the same concerns. I have the cash and have eagerly waited for years, only to feel hesitant to hand it over given recent trends. Something just seems off.
Can ourshares be diluted? Yes, freely.
Is the prospectus provided to help us understand? No, it’s provided so you can’t sue if something goes wrong.
It’s shady-ish but so is a lot of corporate America. I’ll wait for the last possible minute to decide.
@12g Bingo
@ss you first
@y3 , I had 4 LP offerings and did 3 out of the 4. It was nice to have the money saved when I left and went to another financial firm.
If I was still there, I wouldn't do the B shares. As someone else said, it may be a lot of an LP offering and I may not be able to partake.
Good luck to those who can pay for the B shares and have the company go public by 2028.
If you participate in the LP offering you’re essentially fronting the company the money for layoffs.
@y3 why should this be like a bond issue when you’d be buying equity?
@ss shockingly, for somewhere just over four years, almost $26k. I’m not doing it. I can’t afford to pay that in two years, Edward jones doesn’t pay me enough as it is. I don’t want a variable loan. I also don’t want to chance being ISPd and be stuck.
Plus they have presented a plan as to WHAT they are doing with our money. This should be like a Bond where they have to present “if we get the min we hope, we are doing xxxx. If we get more and up to this amount, we are doing xxxx.” But that isn’t the case, so I don’t trust them.
Something is wrong. They are hurting somewhere financially and not being truthful somewhere… building the India location, all the things they need for that to run successfully from the beginning… not to mention how much $$ is being wasted on Accenture/ER, severances, continued “talent matches”/Keystone/Oracle… not to mention how they are cutting CSTs and merging offices for FAs and making branches more self sufficient without home office help… nah. Too many dominos falling all over the place to justify paying in.
I just don’t trust them- which is a shame, cause four years ago when I started, I would have signed up as an LP immediately. They’ve cause all my hope to be lost with everything they’ve done since I started at EDJ. No thanks. I declined the offer on the phone immediately. The GP calling me didn’t even know who I was, nor did I know who the GP was either- which is also a sad shady scenario.
@ss I’m fine. Thank you for asking though.
I’m curious as to how many people are going to pay into the LP offer and then get ISPd?!?!?
Let’s hear it 👀 How much did you receive in your LP offer? Completely anonymous.
A. $5K–$10K
B. $10K–$15K
C. $15K–$20K
D. $20K–$25K
E. $25K–$30K
F. $30K–$35K
G. $35K–$40K
H. $40K–$45K
I. $45K–$50K
J. $50K+
@jy Can you explain more about this? I haven’t heard about this
Those paying into this LP are complete id--ts. EDJ is just an MLM. One day you will all realize this.
Can anyone explain the financing for this LP offering? For the Class A shares previously, you could just use the earnings to pay off your shares and not worry about it. This time around, it seems they will only give you financing for 2 years and you're expected to pay everything off within 2 years?
Class B will equal SLP returns which have been around 30%. GP returns ytd around 70%. Take as much as you can get. These greedy GPs want the gravy train to keep rolling
@ey what it the world are you trying to say?
@ey I misread this, but still an odd statement here
@ey Class A can be exchanged for B, why spread misinformation?
the A shares are only going to get the guaranteed 7.5%. B's will get the rest. they cannot make A holders exchange them for B's, so they'll bait the holders. once they've reduced the number of A's, they'll dilute the dividend by issuing a lot more B's. That's probably when B's will go public. a $1K unit will then get to appreciate in value. at a 12%payout, it'll probably go to $3K and pay a healthy 4%.
and when a GP retires, they'll probably turn their $1M in GP units into $3M of B units...
not bad for 10 years and a $275K salary, even if it means burning down the house...
@e6 Class A has been 20%+. Do we really know that B will be that high? I see more people having equity as more people to spread out revenue to, which means lower return. I don’t know, I just don’t buy it. I think if they wanted the 20%+ returns then they would have kept it class A instead of changing it to B. Just seems too odd to me. I don’t trust it
This place su-ks but you should take them up on the LP offer. They don’t need your money. They believe you will act differently as an owner. Recent year returns have been 20%+. Class B will likely be high 20s.
You can dislike current leadership and still take the LP. If you quit you can be paid back any equity you built.
@bp investing in your employer is not diversifying your portfolio. It increases your Edward Jones exposure which has not been particularly stable in recent years.
@bp , there's alot of other ways to diversify one's portfolio than the LP offering.
@OP, PP wants to start a vineyard up in her secret garden. It won't be cheap. Need that LP money baby! Cheers!
@bh - Agreed and the OP is exactly the problem we’ve experienced since Penny took the reins - people who do not care to understand the structure or the cultural heritage. Majority of leaders are now from McKinsey who want to butcher the place and the associates are either hired because they are friends with the incompetent wino mean girls clubs that have proliferated or someone who is too lazy to look up the info.
Probably primarily to fund projects would be my first guess
There are plenty of videos explaining in the firm’s intranet, albeit AI generated. Respectfully, you don’t sound like you don’t know much about investing. I know everyone is up in arms about the changes, but it’s foolish not to educate yourself and seriously consider it based on your individual circumstances and goals, if only as a way to diversify your portfolio.
It’s all online and has been communicated for several months. You’ll get better information if you do the work to look it up instead of asking for answers here. You either don’t work for Edward Jones or need to pull your head out of the sand.
You are asking the wrong questions!!! How dare you challenge the establishment of ELT!!! Eat your porridge and shut up!!! :-)