Navigating Retirement: Annuities vs. IRA Withdrawals for Wynn Resorts Employees

Healthcare Provider Update: Healthcare Provider for Wynn Resorts: Wynn Resorts primarily offers health insurance benefits through major insurers including UnitedHealthcare and Anthem Blue Cross Blue Shield. These providers play a significant role in delivering comprehensive healthcare coverage to their employees. Potential Healthcare Cost Increases in 2026: In 2026, Wynn Resorts employees relying on Affordable Care Act (ACA) plans should brace for significant premium hikes, with many states reporting increases exceeding 60%. The confluence of rising medical costs, the likely expiration of enhanced federal premium subsidies, and aggressive rate adjustments by major insurers may lead to out-of-pocket premium increases of over 75% for many enrollees. With the top 10 insurers collectively showcasing record revenues, these escalating costs could impose substantial financial strain on employees and retirees navigating their healthcare choices. Click here to learn more

There are just a couple of things almost all Wynn Resorts retirees need when they hit retirement: predictable income and protection against a cluster of risks, which include longevity risk, performance risk and sequence-of-returns risk.

In the past we have seen retiring Wynn Resorts employees utilize the “4% rule,” where retirees take annual withdrawals start at 4% of the entire portfolio and increase with inflation. They then keep the remainder of the portfolio with at least 50% invested in equities. Based on historical data, this would give a Wynn Resorts retiree about 30 years of retirement income.

As the economy constantly changes, a number of factors may force prospective Wynn Resorts retirees to revisit the 4% rule. It may be worth considering annuities as an alternative.

As life expectancies increase, Wynn Resorts retirees need to prepare for expenses over a longer time frame. In the past we would plan for a 15 to 20 year retirement, but now we need to prepare for a 30 to 35 year retirement. What is available to assist meeting the 35-year time frame?  

The annuity strategy can assist with a few of the pitfalls we see in the 4% rule. For example:

If you need $50,000 per year in retirement and need that for 30 years, you may need $1.2 million in fixed income at a 3% interest rate. BUT if you look to fund $50,000 for 30 years, you can cover that expense with $800,000 by choosing the annuity option.

The other pitfall with the 4% rule is that it may not reflect a client’s risk tolerance. When you are accumulating assets, you can afford more volatility and can take on more risk than when in the retirement and withdrawal phase after leaving Wynn Resorts. 

Also, should we see a drop in the market, you would be able to reduce your income using the 4% rule, which you cannot do if you choose an annuity option.

 

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