The Philadelphia Inquirer from Philadelphia, Pennsylvania • Page C01

Classifieds SEgN Begin on Page E9. Tuesday, june 14, 2005 Wax JPftilaMpfna llnquirer www.philly.com Most Active Local Stock I Dow Jones Industrials I Nasdaq Composite I Standard Poor's 500 I 10-Year Treasury Note I 0.8272 Euro Up 0.0019) Comcast $31.67 Down 6 cents, 0.19 I 10,522.56 Up 9.93, 0.09 I 2,068.96 Up 5.96, 0.29 I 1,200.82 Up 2.71 0.23 I 4.09 yield Up 0.04 I 109.59 Yen Up 1 .09) Jeff Brown On Personal Finance Barnes president to leave by January Start Roth IRA early, with help PATRICK KOVARIK Associated Press, pool French President Jacques Chirac (right), accompanied by Airbus president Noel Forgeard, toured the French manufacturer's A380 super-jumbo jet yesterday, which was the opening day of the Paris Air Show. Boeing is spoiling Airbus' Paris party Air-show buzz: U.S. planes selling well. Kimberly Camp wants to pursue other challenges as the nonprofit plans its move to the Parkway.

By Wendy Tanaka and Patricia Horn INQUIRER STAFF WRITERS The Barnes Foundation will be getting a new leader as it prepares to move its famed art collection from suburban Me-rion to Center City. It announced yesterday that Kimberly Camp will step down as president and chief executive officer by the end of the year. "I have decided that this is a good time to reassess my professional objectives and begin a transition to other challenges," Camp said in a release distributed on behalf of the Barnes. She said she wanted to resign "not later than Jan. 1, 2006." Reached by phone last night, Camp declined to comment.

The foundation won court approval last year for its proposal to break founder Albert C. Barnes' instructions and move its collection of Cezannes, Matisses and other masterpieces to a potentially more lucrative site on the Benjamin Franklin Parkway downtown. The move is being backed by three local foundations the Pew Charitable Trusts and the Lenfest and Annenberg Foundations that vowed to help raise $150 million for the effort. So far, $100 million of that has been pledged. Camp, a Camden native, joined the Barnes in 1998 after heading the Charles H.

Wright Museum of African American History in Detroit. Bernard J. Watson, chairman of the Barnes board, said in the release that Camp "has guided this organization with a firm and steady hand through a difficult period of change." See BARNES on C5 forced a six-month delay in the delivery of the 555-seat colossus, which Boeing argues will be unprofitable. A top Boeing executive brimmed with confidence yesterday as he briefed journalists on the status of the 223-seat 787, which is being assembled in Seattle with lightweight composite materials to fly long distances at great efficiency. "Our competition's going to win some here and there," said Mike Bair, the Boeing vice president in charge of the Dreamliner, responding to a question about the Qatar-Airbus deal.

But Boeing has sold so many 787s that its factory is booked for the first two years of production, he said, See AIRBUS on C5 By Ken Dilanian INQUIRER STAFF WRITER LE BOURGET, France This was supposed to have been a triumphant week for European jet builder Airbus, a moment to revel on home turf here at the Paris Air Show after years of besting American rival Boeing. But it hasn't quite turned out that way, and not even yesterday's well-timed announcement that Qatar Airways plans to buy 60 new Airbus midsize passenger jets could change that impression. Qatar may have chosen the still-in-development Airbus A350, but Chicago-based Boeing's new version of a midsize workhorse, the 787 Dreamliner, has been selling so briskly that it has reinvigorat-ed the company's position almost overnight. Other than the Qatar announcement, Airbus has sold just 10 A350s, while Boeing says it has orders from 21 customers for 266 Dreamliners, which will hit the market two years before the A350 does. In fact, Airbus' controlling shareholders decided last week to hold off on the formal launch of the A350, which is the subject of a legal wrangle in the World Trade Organization between the United States and the European Union over the government subsidies that each company accuses the other of unfairly reaping.

And while Airbus will dominate the super-jumbo market for the foreseeable future with its new multidecked A380, a manufacturing problem recently So you're a high school or college student just starting a summer job. Congratulations! Now, what are you going to do with all that money? How about opening a Roth IRA? If you're like I was at your age, saving for retirement is probably about the last thing on your mind. Most of my summer earnings went for gasoline and other necessities, such as motorcycles and 25-cents-a-glass refreshments at a wholesome gathering place called George's, which my parents didn't know about. But the Roth IRA is not as out of line as you might think because you might be able to get your parents to pay for it, leaving you with all that cash to spend on things of more immediate use. Here's how it works: Individual retirement accounts are for saving for retirement.

This year, you can put as much as $4,000 into an IRA. There are two types. The older type the traditional IRA allows investments to grow tax-free until money is withdrawn in retirement, when it is taxed at ordinary income-tax rates. This tax deferral allows your money to grow faster than it would if some of your earnings had to be used to pay tax every year. In addition, a person with a small income can generally get a federal income-tax deduction on all money put into a traditional IRA.

Put in $1,000 and you might save $150 in tax. As good as that sounds, it's not worth much to people whose income is limited to summer jobs, because they're not likely to owe income tax anyway. Roths avoid taxes This is why the second type of IRA, the Roth, is so appealing. Roths are like traditional IRAs turned upside-down. They don't offer a deduction on contributions.

But, generally, there is no tax on investment profits ever. If you put $4,000 into a Roth this year and earned 7 percent a year, you'd have about $118,000 when you retire in 50 years. You could take that out and owe no tax on the $114,000 in profits. Take that much out of a traditional IRA and taxes would be tens of thousands of dollars. Roths have a couple of other advantages over traditional IRAs.

First, you won't have to start withdrawing money after you turn 702, as you do with an ordinary IRA. In fact, you could continue putting new money into a Roth after that age, which you can't do with the other type of IRA. With a Roth, you can take out your contributions at any time without facing the tax and 10 percent penalty imposed on withdrawals from traditional IRAs by people not yet 592. Investment gains can be withdrawn free of tax and penalty, so long as the account was opened at least five years earlier and you have turned 59 Also, you can withdraw up to $10,000 without penalty or tax to pay for a first home. Liberal withdrawal policies overcome one of the concerns young investors have about ordinary IRAs and 401(k)s that money will be tied up when nonretirement needs arise.

Help from family Now for the part on getting your parents, grandparents or other benefactors to fund your Roth. The rules for both types of IRAs say that money put in during any given year cannot exceed the investor's earned income for that year. If you make only $2,000 this summer, that's all you could put in, even though the maximum contribution is $4,000. The earned-income requirement also means that if you have no income, other people cannot put money into your account for you. But your parents (or other benevolent souls) are allowed to give you money.

So they can replace any money you contribute to a Roth, leaving you free to use your summer earnings as you like. They could even help you fund a Roth before you've earned the money. If you earn it by the end of the calendar year, that's good enough. You have until April 15, 2006, to make your 2005 contribution. IRAs are offered by most banks, brokerages, and mutual-fund companies.

Put as much as you can into a Roth. In 50 years, the older you will be thrilled with the result. Morgan Stanley CEO quits under fire A computer-generated image released yesterday of Boeing's midsize 787 Dreamliner. Inside The gambling world gets a new top dog Harrah's Its $10.4 billion takeover of Caesars Entertainment gives it an even stronger position in Atlantic City and Pennsylvania. After months of upheaval and resignations at the investment banking firm, its leader said he would retire.

By Michael J. Martinez ASSOCIATED PRESS NEW YORK While Morgan Stanley's embattled chairman and chief executive officer, Philip J. Purcell, plans to leave the company by early next year, he still has a lengthy, difficult agenda to complete: halting a stream of high-level resignations, reversing a new earnings disappointment, and silencing the criticism that led to his own departure. Acknowledging that calls for his ouster and the exodus of employees have hurt the Wall Street investment bank, Purcell said yesterday that he would retire as soon as a successor can be found, but no later than the company's annual shareholder meeting next March. News of Purcell's planned retirement came three days after nine stock traders quit, the latest in a string of Morgan Stanley executives dissatisfied enough with the chairman's management style to leave.

The resignations, which began in late March, led a group of dissident shareholders and former executives to publicly call for Purcell's firing and a reorganization at Morgan Stanley. Purcell said that created a "sideshow" that distracted the company from its business goals. "This morning's announcement was See PURCELL on C7 ONLINE EXTRA View Morgan Stanley's earnings forecast and Philip Purcell's retirement letter via http:go.philly.comceo Dropping out: Steve Jobs said leaving college early helped him to succeed. C4. Speeding up: Business travelers in a survey would trade personal data for faster airport security checks.

C2. kin, managing director of Jefferies Co. in New York, said Harrah's acquisition of Caesars will be good for the industry. "They can help make Atlantic City more competitive and may tone down some of the marketing wars because Caesars was always very aggressive in marketing," he said. Harrah's also stands to become a major player in Pennsylvania, which legalized gambling last year.

Pennsylvania will allow the development of up to 61,000 slot machines in 14 venues, although the state Supreme Court is expected to rule this summer on a constitutional challenge to the law. Last week, with Gov. Rendell and other politicians present, Harrah's broke ground on a harness track it co-owns in Chester, Delaware County. The track is scheduled to open in mid-2006. Harrah's also now controls land along the Delaware River in South Philadelphia.

Caesars had purchased the land, tucked between Reed and Tasker Streets, for $65 million to build a $350 See HARRAH'S on C3 By Suzette Parmley INQUIRER STAFF WRITER Harrah's Entertainment Inc. completed its $10.4 billion acquisition of Caesars Entertainment Inc. yesterday to create the world's largest gambling company, with 43 properties on two continents. The newly formed company also becomes the largest gambling operator in Atlantic City, controlling 40 percent of the resort's gambling space, hotel rooms and slot machines. Harrah's will own four of the city's 12 casino hotels: Showboat, Caesars and Bally's on the Boardwalk, and Harrah's in the Marina.

Combined, the four casinos accounted for about 40 percent of Atlantic City's $4.8 billion total gambling revenue last year. "Today, we begin the most important task in the history of our company: capitalizing on the tremendous potential of this merger," Harrah's chairman, president and CEO, Gary Love-man, said upon completion of the takeover, which was announced last July. Gambling analyst Lawrence Klatz- The Motley Fool explains "bookvalue." C4. Send column ideas to Jeff Brown, Business News, The Inquirer, Box 8263, Philadelphia, 19101. Contact him at 215-854-4537 or brownjphillynews.com.

Read his recent work or ask a question at http:go.philly.comjeffbrown..