European Stars And Stripes (Newspaper) - August 25, 1985, Darmstadt, Hesse                                August 1985 the stars and stripes Page 19 business news air crashes mean big losses for insurers new York a a series of major aircraft crashes this year is bringing heavy losses to the International aviation insurance business and probably higher premiums for Industry officials there in big trouble writing airline said Sean senior vice president and economist at the insurance information the Japan air lines Boeing 747 that crashed in Japan was the third jumbo Jet to go Down with heavy loss of life in less than two months the Jal Accident killed 520 while 133 died 10 Days earlier when a Delta air lines Lockheed l1011 crashed in and 329 died when an air India 747 crashed into the Atlantic on june at least 430 people died in other commercial aircraft accidents including scheduled airline flights and Charters this not including one in China and two in the soviet in 224 people were killed in 15 accidents involve Money Supply growing ing air planes belonging to the International civil aviation the Montrea based United nations Agen which has 155 said that was the Best year in four the Impact on insurers of this years injuries and damage to aircraft is difficult to pin Down with acc said Peter president of the aviation office of an insurance consortium based in but in terms of increased he i would think that at least 20 percent would be required by the end of the Ogrady estimated that airlines paid million for insurance coverage for planes and injury liability this Mooney and Ogrady estimated that coverage of air Craft and equipment and liability payouts for the three latest major accidents alone would total about Mil an estimated million May be needed to pay for the earlier Ogrady what were looking at is Uncertain Economy troubling fed Washington a the Uncertain economic Cli mate facing the country has put Federal Reserve chair Man Paul Volcker and other top policymakers at the nations Central Bank in a ticklish private economists Are while the Federal Reserve Board has to be concerned about the extremely weak signals the Economy has been sending out this the Central Bank is constrained in what it can do by the surging growth in the nations Money Supply growth that is raising fears inflation May come roaring these economists the fed is caught in a Nasty said David senior financial economist at data resources a Pri vate forecasting because of this Many analysts Are predicting that top fed policymakers will decide essentially to do nothing when they meet behind closed doors tuesday to map future monetary if this guess turns out to be Correct it is Likely that interest which fell sharply through much of the first part of the will remain about where they Are in coming the fed is going to leave policy pretty much unchanged because we have a standoff Between the weak Economy and excessive Money said David economist at Aubrey Lanston a government securities the aim of the through its control of the nations Money is to Supply enough Money to Foster sustained economic growth while not allowing such a rapid increase that it promotes by controlling the Money the Central Bank influences the Cost of Money interest for most of the past the fed has been pushing interest rates lower in an Effort to revive the faltering a variety of rates have fallen by As much As 3 percentage Points since last the prime the key business lending now stands at its lowest level in almost seven while Home mortgages have dipped to their lowest Levels in five but despite the decline in interest the Economy has remained Overall As measured by the Gross National was an anaemic 1 percent at an annual rate during the first six months of the while the Reagan administration is forecasting a Strong rebound to a 5 percent Pace in the second half of that rebound has yet to investors guide by William Doyle All the sales pitches for individual retirement accounts stress the tax Little is said about the fact that i must take Money out of my Ira at age a Friend told me the rules on Ira withdrawals were changed by some Law Congress passed last what were those changes three Basic changes in Ira withdrawal rules were included in the deficit reduction act of All be came effective As of you now Are required to Start making withdrawals from your Ira no later than april 1 following the year in which you reach As if you dont make the required youre hit with a 50 percent penalty tax on the amount you should have taken out of your any Ira participant who becomes in 1985 or later is allowed to recalculate his or her life expectancy each this change reduces the amount you must withdraw each year and stretches out the withdrawal so that you dont outlive your beginning this anyone who turns can make Ira withdrawals based on the joint life expectancy of the account owner and a beneficiary who can be a brother or before this Rule withdrawals had to be made at a rate sufficient to exhaust the Ira Over the joint life expectancy of the account owner and the joint life expectancy can be recalculated every but at least half of the iras assets must be withdrawn during the account owners life in concerned about what happens to my Ira when i will my wife have to take All the Money at once and pay income tax on it your wife could do if Shes so if theres a sizable amount in the taking it All at once would put her into a higher income tax bracket and result in her paying a fat income a spouse who is beneficiary of an Ira is permitted to Roll Over the Money in the account into her or his own if your wife does the Ira you leave behind will be treated As if it were always your she wont have to pay income tax on any of it until she makes when an Ira beneficiary is someone other than a the entire amount in the account must be withdrawn within five years after the account owners in most theres an exception to this five year if the Ira participant had started to take periodic withdrawals Over a term certain before in that payments would continue to be made to the beneficiary for the agreed upon number of years in the withdrawal before All Ira beneficiaries could Duck the five year Rule by withdrawing All the Money and immediately buying a paid up the Money was not taxed until it was received from the annuity sometimes decades that resulted in quite a bit of tax that loophole was closed by the tax equity and fiscal responsibility act of you wrote that a self employed person now is allowed to put up to 20 percent of his or her net self employed income but no More than into a Keogh tax sheltered retirement plan each i cant believe the when the rest of us Are limited to putting annually into an Ira into a spousal Ira when Only one spouse is was that a major typographical error that the effective with for defined contributions to hr10 self employed retire ment better known As Keogh these rules have been changed a number of times Over the the latest change gives Keogh plans roughly the same status As corporate pension King features columnist Doyle welcomes written but he can provide answers Only through the you can write to him in care of the stars and Apo million in just major losses and million in so you dont have any Money left to pay for partials Are smaller including such things As lost baggage and partial damage to an also putting pressure on the airlines insurance premiums is the state of the Large insurance which buy policies from the original insurance these consortium and Lloyds of the under writing Exchange that handles a substantial share of this have been facing tight returns said Charles senior vice president at the aviation of fice of clearly the recent losses will further create pressures on the reinsurance but these three latest losses alone will not control the whole he after a local customs and various International agreements determine the amount that May be recovered from an with limits often based on the destination and origin of each digest sky Channel to network now broadcasting to Belgium Belgium a sky the Pri vate English television has begun distributing its programs by Cable in bringing to More than 4 million the number of european Homes receiving sky Channel in a the company said in addition to sky Channel programming is now in West Den Mark and Tough French economic policy  let Recd says Paris a France has made Progress in reducing economic imbalances Over the past but the re covery is Only partial and there should be no relaxation of Tough policies adopted in the organization for eco nomic cooperation and development in its annual examination of Frances economic the 24nation Recd applauded French policymakers for curbing reducing external deficits and improving corporate it was achieved at a Cost Domestic de Mand has unemployment has swelled and eco nomic growth has been k Mart will try Wendy fast food in Michigan store a k Mart will lease space to Wendy International to test replacing traditional cafeterias with fast food the companies k which already announced plans to sell prescription drugs and offer financial and insurance services in some will lease space in its Canton township store to k Mart spokeswoman Leslie Kota this is strictly a and just at one Kota we have a 10year lease agreement with the agreement can be broken at any time at the option of either Harvard drops Standard test for business school applicants Boston up the Harvard business school has stopped requiring applicants to take the graduate management admissions test because it does not predict which students have the highest potential for being top there is no relationship Between someones ability to perform Well on a standardized test and to perform As a John assistant Dean and director of told the Boston the standardized tests scores Are not helpful to us in from a Pool of highly talented those individuals we judge to have the potential to become out standing general