Final answer:
Whether to use a money manager for your investments depends on personal circumstances. Mutual funds offer professional management and easy liquidity but come with costs. Financial education and early savings are also critical to building wealth.
Step-by-step explanation:
The statement 'You should use a money manager to handle your investments' is not strictly true or false as it depends on individual preferences and circumstances. Using a money manager can be advantageous because they bring professional management to your investment portfolio, which can be especially beneficial if you lack the time or expertise to manage your investments yourself.
One of the examples of such managed investment opportunities is mutual funds. Mutual funds are paid for by shareholders and are professionally managed. This management can produce diversified portfolios which aim to balance risk and returns for the investor. These portfolios present an increased expected return without substantial risk factors due to diversification. However, it is essential to note that mutual funds can be expensive in price because of management fees and other associated costs.
Another key point to consider is the liquidity of mutual funds; since there is high demand in the market, they can easily be converted into cash by selling them to other investors. However, picking the right stocks and anticipating market movements is challenging even for financial professionals. Thus, alongside using a money manager or investing in mutual funds, it is crucial for individuals to engage in continual education and start saving early to effectively accumulate financial wealth.