David and Kate White Jones, aged 37 and 34, have two young children, aged 4 & 7, and live in Hamilton. They own their own coffee-grinding business in which they work together full-time. The business is doing reasonably well. They rent a shop premises and own equipment worth $28,000. After covering basic living expenses, David and Kate can put aside $1,500 as savings each month. They have managed to save $50,000 so far during their working lives and this money is earning 3.15% annual interest, compounded monthly, in a bank fixed deposit. As self-employed they have no KiwiSaver funds. David and Kate are renting at present but wish to purchase a home. Their goal is to put down a 20% deposit on a $700,000 home in three years’ time. T
David and Kate White Jones, aged 37 and 34, have two young children, aged 4 & 7, and live in Hamilton. They own their…