Reviewing Common Financial Planning Mistakes Made by Investors

The overwhelming majority of Americans haven't invested time and effort in financial planning, according to Harold Evensky, chairman of Evensky & Katz/Foldes Financial. Evensky said there are lots of excuses consumers give for not planning, and many investors don't seriously think about it until they are nearing retirement. Evensky also said there are many common mistakes made by investors, including setting unrealistic expectations or chasing returns that aren't there. 'People think that if they invest it, they're going to make lots of money,' said Evensky. 'The problem is we're in a period of the market where interest rates are historically low and valuations of the market are extremely high. So the likelihood of returns over the next decade is very modest.' Evensky says after factoring in taxes, inflation and expenses, 2.5% to 3% returns are likely. MainStreet's Rhonda Schaffler has details from New York.