The case of Miller & Schroeder is a cautionary tale about how you shouldn't leave everything up to a financial adviser, no matter how smart he is, no matter how well he's delivered for you in the past. Follow the old adage: "If your mother tells you she loves you, check it out." Miller & Schroeder, a Minneapolis-headquartered investment firm, specialized in helping investors pull in dependable interest payments from bonds. The clients, many of them elderly, had done just fine for a long time on a diet of reliable corporate and municipal paper that the firm fed them. Then from 1996 to 1999 Miller & Schroeder peddled municipal bonds to allow an outfit called Heritage Healthcare to build a dozen nursing homes focused on Alzheimer's care.
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