Sometimes red flags are waving gently in front of us, but we are blind to their signals.

Many of Bernie Madoff’s clients failed to notice the warning signs that something wasn’t quite right. Madoff was the infamous architect of an epic securities swindle that lost billions in clients’ money. At one point, Madoff’s wealth management business was the largest in the world. He seemed reputable, likable, and well connected. The former Nasdaq stock market chairman was known for providing high, steady investment returns for his wealthy clients’ portfolios.

Unfortunately for Madoff’s clients, his wealth management business was a massive Ponzi scheme. Ultimately, losing billions of his clients’ assets earned him a 150-year prison term for his actions. As investors, we can learn from the red flags that Madoff’s clients experienced but for some reason chose to ignore. Madoff died in April in a federal prison.

Signs or red flags that something was…

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