Thread regarding Edward Jones layoffs

Ted jones was a farmer. And he never sold a healthy and viable cash cow. Never. He only sold a cash cow that had become disabled or hobbled. Farming 101 and finance 101. Free lesson for all of you. Don't get milked.

Based on comments below, looks like level 13 folks (myself included) got around $40k in LP offer. Can level 14s share where they landed?

@ds - You are correct. Conversion of all A into B timeframe is in two years.

Sure. If you want to pay for the GCC and
“ EJ Bank”. Which is PP legacy. I rather not contribute money to my employer where I receive 13% of the firm’s profits. Doesn’t make me feel so valued. They really need to look at the distribution of profits if they want me to contribute, plus this offer will still be available in 2 years when the next offer comes. They are hemorrhaging cash which is why they had this ridiculous offer. Look at the financial statements of their K10 and cash flow statement. It’s stupid how much we are spending and ignoring all these branding promotions. I want to know how much we spent on the McLaren and college sponsorships. It just seems frivolous at this point. No way we are seeing any profitability from these agreements.

@ed 11

@e4 - what grade level are you?

@b0 I have been around 25 years and my offer was not close to your amount.

@OP Hope they don’t do the same thing to you that they did to owners of A shares. Apparently they can and will make changes to the agreement/contract anytime they wish thus changing my retirement picture considerably by lowering my income. This done in order to force me to transfer to B shares so they won’t have to worry about paying the guaranteed percentage. Operations moved to India, upper management that couldn’t care less about their employees and retirees, forcing HBAs in to the office, removing older employees so they don’t have to put up with complaints about removing traditions and honoring Ted, using manufactured “needs improvement” to avoid raises and open the door for more firing. Good luck to you!

Here’s some advice to take or leave. Don’t ask for financial advice on a layoff site. The ability or inability to retain LP after separation is on the LP site so you’ll get more reliable information there than a layoff discussion board.

@b0 This is the amounts that Grades 12-13s were right around depending on factors like first offer, volunteerism, leadership, reviews, area, etc.

@OP Okay, I want to make sure you all are making informed decisions.

You do pay interest on a loan if you take it. At current rates with a slight discount, they're around 5.5%.

The targeted monthly payout is 10% annualized, and additional variable distributions are made quarterly (this is different than A shares that are Oct/Feb). The quarterly variable distributions would be 15-20% annualized (based off historical returns) bringing the total annual return to 25-30% (less the 5.5% loan interest rate if you have a loan on the same dollars).

So that means, you could have one quarter with a great payment, the market and firm implodes and then the next quarter a much lower variable distribution, but you should still more than often than not be receiving your monthly 10% annualized payment... unless things go really, really wrong.

With these absolute clowns running the show.... or a insane market crash... anything is possible, but make sure you're making decisions based on how it's structured and with the right info vs. internet posts.

I've got the same question and here's where my thought process is for a $32,500 offer:

1. Pay in full. Distributions are "targeted" at 10% annualized. Those distributions can be reinvested in the market and no drag from interest.

2. Finance. $6,500 downpayment and $26,000 loan. That $26,000 can stay in the market while the distributions from the LP pay down the loan.

The only real question is will that 26k staying in the market out-earn the reinvested distributions and no interest being paid?

Answer: don’t do it.

Just my two cents. I’m taking the loan because what I’m earning in the market (even of late) is a higher return than the interest on the loan. Of course it’s a gamble, but one I’m willing to take.

Correction, if you do get a loan there is interest. I was in that situation. Best to pay all in if you can.

@OP how’d you get $40k as your first offer? Are you a Sr director or very profitable FA in the field?

Sure pay it off if you have the cash laying around.

@ad , this is all good information for the OP. If one has the whole payment, I would also pay up front.

I know when my offer way back in the day was 5k, I did the loan. Loan was paid in 2 years.

1) Better paying off as soon as you can. You will get returns right away if you don't have a loan. If you get a loan, it's no interest and your returns pay down the loan (I don't think it even shows up on a credit report). You always get principal back if you separate from the firm.

2) Depends on your tenure, standing and if you meet the rule of 70 (years at the firm + age = 70, and you are at least aged 50). If you meet that criteria and are in good standing, you can retire from the firm and keep the LP as a lifetime benefit. I've always heard as long as you don't go to a competitor in a trading or sales role (e.g. financial advisor) you can keep the LP.

I've heard of people who have quit then come back, they've negotiated to have their LP reinstated, but unsure if that is true with current leadership.