Keepo holding.CARPETRIGHTSomeone deserves to get a carpeting. Managers at the UK's biggest floor-coverings retailer, Carpetright, decided a few months back to offer massive discounts to pep up sales The strategy failed. The shares sit at the same level as in April, when we said avoid. That remains our advice.XANSAXansa is a punt on the phenomenon of "offshoring" It has as many staff in India as in the UK. But this risk is outweighed by the management and its business model. On Panmure Gordon's upgraded 2006 forecasts, the shares trade on an 11.6 times profit/earnings ratio, which is not expensive.
To secure a pension of around £15,000 a year in retirement, Richard will need to contribute a great deal more than £250 a month - Pimblott suggests around £1,000 a month would be more realistic.However, his main priority is to buy a house, so saving more may not be affordable for now.. And it is cutting distribution costs by selling more trips online.The main risk is that the consumer will go on strike, holidaying at home if at all. What with tsunamis in south Asia and hurricanes in the US and Caribbean, it has been "one thing after another", according to Peter Long, the chief executive.It speaks reams about the management's skill and the strength of its business model that such extreme natural disasters have not blown First Choice off its course to this year's double-digit earnings growth.First Choice has made the specialist holiday market its own among mainstream operators, giving it plenty of scope to build on what it has already achieved.It has spent £68m on buying niche travel businesses this year and has no plans to stop there. First Direct, for instance, pays 5.5 per cent on the maximum £3,000 investment, though this is an internet-based deal, so he will need to have online access to take advantage of it. If not, the best non-web accounts currently pay around 4.5 per cent.Windsor-Lewis thinks that as Richard can afford to save £250 a month, it would be helpful for him to prioritise his short, medium and long-term strategies. For example, short-term savings could include accumulating cash for a deposit or increasing his emergency float.Medium-term savings objectives could include a career change or property purchase up to five years in the future.For the longer term, Richard could consider an equity-based ISA - although these plans have more risk attached, they also provide the potential of better growth. It is possible to invest up to £3,000 each year in both an equity ISA and a cash ISA, so saving for the future does not need to be at the expense of building up short-term funds.Windsor-Lewis adds that long-term retirement objectives are best met by pension funding because the tax breaks on these plans are so valuable.PENSIONRichard has already built a pension fund of £8,000 and the employers he is considering joining will contribute around 3 per cent of his salary towards a pension, says Pimblott.
Richard must first decide whether he is going to follow his dream and become a teacher. Once his financial position is clearer, his planning needs will be easier to assess, she suggests.SAVINGSRichard has no savings but does have a fairly considerable amount of money in his current account, says Wotherspoon, even though this pays almost no interest. He suggests that Richard immediately moves this cash into a different account that provides instant access as well as a better rate. Doing this will also help him to build up an emergency fund.It is always sensible to have three months' salary in an instant-access account in case of emergencies. For Richard this will be around £3,000, of which he already has a fair proportion saved.He should consider saving using a tax-free individual savings account (ISA) that allows instant access. Cash ISAs are risk-free and operate in just the same way as any bank or building society account, but without any tax to pay on interest.The best accounts pay quite generous rates of interest - certainly far more than Richard is currently earning in his current account. The monthly cost for this would be around £620 on a repayment basis.