Ask Matt: Do I need an investment manager?

Q: Do I need an investment manager?

A: Managing your money yourself has never been easier. If you have time to look after your investments — and some interest in doing so — you don't need an investment manager. There are cases, though, when it can make sense to pay one.

For a vast majority of investors, managing your money doesn't need to be complicated or expensive. Mutual fund companies like Vanguard often allow you to take online questionnaires that measure your appetite for risk. Usually these tools help you gauge how much of a loss you could stomach before being tempted to sell stocks in a panic. Once you understand how much risk you can handle, you can then craft a portfolio using low-cost index funds or exchange-traded funds. Risky investors will load up on stocks, while risk-averse investors will want to focus on bonds. Stock holdings should be further diversified in large and small U.S. stocks as well as international, real estate and small-company positions. All these asset classes can be bought with very low fees from most mutual fund companies that offer index funds. Most of the large online brokers also offer exchange-traded funds that can be bought and sold with no fees.

If your eyes glazed over just reading the previous sentence, or if you question if you'd have the couple of hours needed for research, there is something to be said for getting help. Jumping into the market with no plan can be a poor idea if you start panicking. Getting help — even if you have to pay for it — can still be better than doing nothing.

Paste BN markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz.