Edward Jones Partnership Question

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Feb 4, 2009 10:01 pm

I am a new to Edward Jones and I keep hearing about the partnership and GP opportunity, but cannot seem to get a straight answer. Can anyone fill me in on how this works?

- How do you become a LP?

- How about a GP?

- Do you have to buy partnership? How much does it cost to buy in for LP / GP?

- Is it determined by tenure?

- What kind of payout does a LP or GP get per year?

- How does it grow and can you buy as much as you want?

- Does my GP make a ton of money off of the GP?

Feb 4, 2009 10:23 pm

LP - Suck off three or four GP's.


GP - Suck off six to eight GP's.
Buy - Oh yes, you pay, and pay, and pay.
Determined- Oh yes, some get sucked and some get fu**ed!
Payout - Depends on how much multi-Mil Hill and his pimp Jim Piddle leave for the rest.
Grow - They give you what they want you to have.
Ton - He makes a ton off of YOU.
 
Eddie Jones is a work from home scam.  Believe me, if you work there for one year, you will know more people who used to work for Jones than actually still work there.   All they do is get you in there to get your family and friends, and help build a national database that is probably used by Homeland Security.  Keep coming to this site, and you will see the light.
 
My damn feet hurt,
ED
Feb 4, 2009 10:36 pm



It's been awhile, Ed.  Good to have you back.
Feb 4, 2009 11:43 pm

EdJahovah is right but he left out some additional details.  It also helps if you believe everything you are told at meetings.  The last thing you want to do is ask questions.  In our region it also helps if you play a lot of golf and smoke cigars. 

Feb 5, 2009 9:24 am

I still don't get the work from home scam stuff.  I've been at jones a long time, and haven't worked from home since studying for the 7.  I know most people start in they're homes but if your worth a shit, you'll be out of there inside 6 months.  Just a thought

 
-Underminded
Feb 5, 2009 9:32 am

Some real answers,

 
(1)  To become an LP, you have to be with the firm at least 2 years in the home office.  In the field, there is a minimum level of profitability.  The amount of profitability is determined at the announcement of the offering.
 
(2)  As an FA, you need to be a regional leader.  To be a FA invited into the home office, a very successful broker.
 
(3)  Yes you have to pay.  In the field you must put down at least 25% and then you can borrow the rest.  EDJ helps se that up.  My partnership has always paid for the loans.  In the home office and for BOA's, they have to put down at least 20%.
 
(4)  The historical payout for LP is around 20%, probably 45? for GP
 
(5)  You can buy as much as they offer, not a dollar more.  You can take less, few do.
 
(6)  Do the GP's get rich?  Jim Weddle has a Ferrari collection.  Draw your own conclusion.
Feb 5, 2009 9:49 am
henryhill:

Some real answers,

 
(1)  To become an LP, you have to be with the firm at least 2 years in the home office.  In the field, there is a minimum level of profitability.  The amount of profitability is determined at the announcement of the offering.
 
(2)  As an FA, you need to be a regional leader.  To be a FA invited into the home office, a very successful broker.
 
(3)  Yes you have to pay.  In the field you must put down at least 25% and then you can borrow the rest.  EDJ helps se that up.  My partnership has always paid for the loans.  In the home office and for BOA's, they have to put down at least 20%.
 
(4)  The historical payout for LP is around 20%, probably 45? for GP
 
(5)  You can buy as much as they offer, not a dollar more.  You can take less, few do.
 
(6)  Do the GP's get rich?  Jim Weddle has a Ferrari collection.  Draw your own conclusion.
 
What the fuh..........?  A collection!  Most people would be happy with just one, I'd be happy just to be able to drive one once.
Feb 5, 2009 10:30 am
UNDERMINDED:

I still don't get the work from home scam stuff.  I've been at jones a long time, and haven't worked from home since studying for the 7.  I know most people start in they're homes but if your worth a shit, you'll be out of there inside 6 months.  Just a thought

 
-Underminded
 
Agreed.  This is the most over-sensationalized aspect of working at Jones (that and "doorknocking").  What most people don't realize is that after your first year or two, almost nobody doorknocks, and after your first year, virtually everyone that "made it" is in an office.
Feb 5, 2009 10:35 am
jkl1v1n6:
henryhill:

Some real answers,

 
(1)  To become an LP, you have to be with the firm at least 2 years in the home office.  In the field, there is a minimum level of profitability.  The amount of profitability is determined at the announcement of the offering.
 
(2)  As an FA, you need to be a regional leader.  To be a FA invited into the home office, a very successful broker.
 
(3)  Yes you have to pay.  In the field you must put down at least 25% and then you can borrow the rest.  EDJ helps se that up.  My partnership has always paid for the loans.  In the home office and for BOA's, they have to put down at least 20%.
 
(4)  The historical payout for LP is around 20%, probably 45? for GP
 
(5)  You can buy as much as they offer, not a dollar more.  You can take less, few do.
 
(6)  Do the GP's get rich?  Jim Weddle has a Ferrari collection.  Draw your own conclusion.
 
What the fuh..........?  A collection!  Most people would be happy with just one, I'd be happy just to be able to drive one once.
 
If you bought stock in one company every year for 25 years, and the returns basically ranged from (LP) about 15% to (GP) 65% every year, you can do the math.  I don't fault anyone that buys into a partnership and gets rich doing it.  His salary is what, $250K? 
Feb 5, 2009 3:57 pm

-- LP returns are 15 percent? GP returns are 45 pct?!

Gee, if there's one thing this last year has taught me is to distrust eye-popping returns. This just seems ..... strange to put it charitably. Half the firm is unprofitable and the GPs return is 45 pct?!?! Are we paying this out of 'growth.'
---Something else that is suspicious is million dollar producers getting GPs and going to the home office. They wouldn't go if they weren't pulling down the same dollar figures and they're doing ..... what. FA training. That's a 500k a year job?
 
 
 
Feb 5, 2009 5:11 pm

Some GPs are the ultimate kool aid drinkers or simply don't want to run a practice anymore...

 
Some of the time it is BS though.. Some GPs were really successful for a long time, others got hot for 3-5 years and got invited in(can't imagine how there clients feel, probably B shares)... and then there is Weddle, he was in the field for I think 3 years max, then he came to the home office....
 
Rumor has it that if you are a GP, you automatically get $1million in GP. So that is why they leave, I think their base at Home Office is between 75-125K, then the GP proceeds tack on a crap load... Some of the biggest LP and GP holdings belong to lifetime IT guys...
Feb 5, 2009 5:21 pm

Keep in mind, many of the GP's (Weddle included) came to the home office back when there were like 500 brokers in the firm.  They needed people.  It was a different time back then.

 
Some of the newer GP's just got tired of being advisors and dealing with the hampster wheel.  You have to consider that many of them had 1,000-1,500 accounts, and may have been old-school "brokers".  Got tired of making 300 calls a month.  Everyone has their own reason for doing it. 
 
Here's the other thing, and this is purely financial:
When an FA retires at Jones, wirehouse, whatever, they get to sunset their book to a newer FA, so they get some ncie income for a few years of doing very little work.
 
When a GP retires, all that GP share is converted into subordinate LP shares, and you can keep it for life.  So that $1mm in GP that turns into LP all of a sudden becomes a $200K income stream for life, and can be sold back to the partnership anytime.  And it's more like 400-600K while you aer working and it's GP.
Feb 5, 2009 5:31 pm

Doug Hill, has a pretty sweet house in St. Louis... and all these big guys have houses in Lake Ozark, MO...

 
 
Feb 5, 2009 5:36 pm

It's almost like the Mob, for those high enough up, the rest are just the lackeys...

Feb 5, 2009 5:49 pm

The difference is that Jones has years of returns reported and the numbers to back them up.  Bernie didn't. 


Most FAs who leave the field to got to HQ take a pretty sizable pay cut to do so. 
 
If you want to be a GP at Jones you really have three avenues to get there.  One, is through HQ.  You can stay at Jones in the HQ, work your butt off (or kiss enough of the right ones) for 10+ years and maybe be one of the lucky few who get a GP offering. 
 
Second is to be an expert in your field, say HR, and have Jones bring  you over into a leadership position.  We have experts like that come to us all the time.  Kind of pisses me off when I see it.  Nothing like catching the brass ring when you're not on the merry-go-round. 
 
Third is to get there from the field.  You have two shots at it from the field.  First, you can get to be the RL.  Only RLs can become GPs and stay in the field.  GP usually follows the RL position within about 3-4 years.  Since there is only one RL per region, those choices are limited and those guys usually don't want to give up their GP or their RL position. 
 
Second, if you're a top producer, but not the RL and doesn't look like you're ever going to get the RL position, you can go to the home office.  You'll end up running some department somewhere, going to a bunch of meetings, and trying to make your mark on the Jones world.  You'll go from making $500K+ in your office to a guaranteed salary of about $125K, plus whatever the GP makes for you.  If you were a GP last year, your pay got cut in half.  But there will be some years where you make a lot more than you deserve.  The trade off is that your life is no longer your own.  Jones may tap  you on the shoulder and say they need a GP to run the mutual fund processing area in Tempe.  So, you uproot your family and move to Tempe.  They may later say they need someone like you in Toronto.  Again, a family move.  Or you could be very fortunate and get to spend the rest of your working life in STL. 
 
Weddle has happened to hit a couple of these paths.  He was a good producer in the field, came to the home office, worked his tail off (or politicked it off), and was handed the MP role.  He's probably one of the lowest paid CEO types in the biz.  I promise you when the Obama administration gets around to capping CEO salaries, he won't have to worry about Weddle all that much. 
Feb 5, 2009 5:53 pm

http://stlouis.bizjournals.com/stlouis/stories/2006/08/28/story1.html



Explains the last offering in 2006 or so...
 
Weddle's salary maybe $250K, but he is taking home at least 5-7 million...
Feb 5, 2009 5:57 pm

Wonder if Roger Riney still has his shares..?

Feb 5, 2009 6:03 pm

Sorry... I looked into all this when I suppose to be studying for my series 7 when i was with them..

 

8. Edward Jones' distributed 11% to 12% of its net income, which includes net revenue sharing, to its limited partners and 10% to 12% of its net income to its subordinated limited partners each year and the residual is distributed to the general partners. Thus, the majority of any revenue sharing received by Edward Jones, after operating expenses, was distributed to the firm's general partners, some of whom make decisions regarding which mutual fund families become "Preferred Families" and others of whom are Edward Jones IRs who recommend the Preferred Families to their customers. During 2003 alone, the revenue sharing received by Edward Jones was equivalent to 33% of the net income of Edward Jones' parent holding company, Jones Financial.

Feb 5, 2009 6:07 pm
Squash1:

http://stlouis.bizjournals.com/stlouis/stories/2006/08/28/story1.html



Explains the last offering in 2006 or so...
 
Weddle's salary maybe $250K, but he is taking home at least 5-7 million...




Probably taxed as dividend income, too. Although he did write that he took a 50 percent pay cut last year.

Feb 5, 2009 6:11 pm
Spaceman Spiff:

The difference is that Jones has years of returns reported and the numbers to back them up.  Bernie didn't. 


Most FAs who leave the field to got to HQ take a pretty sizable pay cut to do so. 
 
If you want to be a GP at Jones you really have three avenues to get there.  One, is through HQ.  You can stay at Jones in the HQ, work your butt off (or kiss enough of the right ones) for 10+ years and maybe be one of the lucky few who get a GP offering. 
 
Second is to be an expert in your field, say HR, and have Jones bring  you over into a leadership position.  We have experts like that come to us all the time.  Kind of pisses me off when I see it.  Nothing like catching the brass ring when you're not on the merry-go-round. 
 
Third is to get there from the field.  You have two shots at it from the field.  First, you can get to be the RL.  Only RLs can become GPs and stay in the field.  GP usually follows the RL position within about 3-4 years.  Since there is only one RL per region, those choices are limited and those guys usually don't want to give up their GP or their RL position. 
 
Second, if you're a top producer, but not the RL and doesn't look like you're ever going to get the RL position, you can go to the home office.  You'll end up running some department somewhere, going to a bunch of meetings, and trying to make your mark on the Jones world.  You'll go from making $500K+ in your office to a guaranteed salary of about $125K, plus whatever the GP makes for you.  If you were a GP last year, your pay got cut in half.  But there will be some years where you make a lot more than you deserve.  The trade off is that your life is no longer your own.  Jones may tap  you on the shoulder and say they need a GP to run the mutual fund processing area in Tempe.  So, you uproot your family and move to Tempe.  They may later say they need someone like you in Toronto.  Again, a family move.  Or you could be very fortunate and get to spend the rest of your working life in STL. 
 
Weddle has happened to hit a couple of these paths.  He was a good producer in the field, came to the home office, worked his tail off (or politicked it off), and was handed the MP role.  He's probably one of the lowest paid CEO types in the biz.  I promise you when the Obama administration gets around to capping CEO salaries, he won't have to worry about Weddle all that much. 
 
Jeesh, Now I feel sorry for those poor saps that choose to give up their freedom and go to St. Louis and be a GP.  Making so much less money and answering to the man.