Marcel, age 28, and Teresa, age 27, have just had their first child, Hanna. They have a combined income of $75 000 and rent a two-bedroom apartment. For the past several years Marcel and Teresa have taken financial responsibilities one day at a time, but it has finally dawned on them that they now must start thinking about their financial future. For several months Marcel has seen the stock market move higher, and he is convinced that they should be investing in stocks. Teresa is more interested in investing in collectibles such sports memorabilia because she has been reading online reports of baseball trading card speculators making huge profits. When asked what their goals are, Marcel replies that he would like to save for retirement, and Teresa mentions her top priority as saving for Hanna’s post-secondary school expenses. They both agree that they would like to buy a house and pay off their credit card bills, which amount to $4000. When asked to list their investments, all they could come up with was a savings account worth $650. What should be Marcel and Teresa’s first priority before investing or making any investment plans? Suppose that Marcel and Teresa asked you to prioritize their goals. Where would you rank their investment objectives? Should Marcel and Teresa invest all their money in one investment strategy? Explain your answer in terms of diversification and the asset allocation process.