Mike and Kathy have just had their first child, Raphael. They have a combined income of 125,000 and rent a three-bedroom apartment. For the past several years Mike and Kathy have taken financial responsibilities one day a time, but it has finally dawned on them that they now must start thinking about their financial future. For several months, Mike has seen the stock market move higher, and he is convinced that they should be investing in stocks. Kathy is more interested in investing in collectibles such as sports memorabilia because she has been reading online reports of baseball trading card speculators making huge profits. When asked what their goals are, Mike replies that he would like to save for retirement, and Kathy mentions her top priority as saving for Raphael'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 $10,000. When asked to list their investments, all they could come up with was a savings account worth $650. What should be Mike and Kathy's first priority before investing or making any investment plans? Suppose that Mike and Kathy asked you to prioritize their goals, where would you rank their investment objectives? Should Mike and Kathy invest all their money in one investment strategy? Explain your answer in terms of diversification and the asset allocation process. Explain why they should consider investing in mutual funds rather than individual stocks? Instead of mutual funds, should they consider ETFs? Explain, what type(s) of equity mutual fund(s) or ETFs would you recommend Mike and Kathy invest in? Why? [6 pts]