I started an account with Smith Barney because my new husband had been satisfied with the broker there. I have been totally unhappy with the performance of my account. In the three years that my account has been there, I have lost close to 10% of my $300,000 principle. When I look at the statement, everything that the broker sold me has declined in value. He sold me General Motors and Ford bonds shortly before they were downgraded to junk status. I think that his recommendations are based on his commissions, not on what is in the best interests of the clients. I grew up with a father who totally distrusted brokers, and now I understand why. In the brokerage account that I have at TD Waterhouse, where I manage my own investing, I have done very well. I buy mutual funds based on my own research, combining the recommedations of Consumer Reports and other unbiased rating agencies. I have learned my lesson and will do my own investing from now on.
