You are an investment adviser to Mr.

You are an investment adviser to Mr. Crochety, an elderly man who lives solely on his social security income although he managed to accumulate an investment portfolio worth about $100,000 over the years. Mr. Crochety recently got his hands on a business publication and read about the tax-free interest paid by municipal bonds. He calls you and instructs you to sell his other investments and invest all his money in a municipal bond portfolio, so that “the government doesn’t get any more of my hard-earned money.” You tell Mr. Crochety that you don’t believe this is a wise move because he’s in such a low tax bracket that municipal bonds are not a good investment for him, but he is insistent. Based on these facts, you should