Chrisanna Prez Rodrguez and her husband, Fernando, have worked since their early 20s. Chrisanna, now age 48, worked for a previous employer for 8 years. When she left that job, Chrisanna left her retirement money in that employers 401(k) retirement plan. The investments are now worth $85,000, and they currently earn about 5 percent annually. She now works as a food services manager for a convention center, earning $110,000 a year. Chrisanna contributes $367 each month (4% of her salary [$110,000 3 0.04/12]) to her employers 401(k) retirement plan. Her employers policy is to provide a 100 percent match up to 6 percent of Chrisannas salary contributions and allow her to contribute a total of up to 8 percent of her salary on her own. Chrisannas 401(k) account balance at her new employer is $21,000. They have no other retirement savings. Fernando, age 47, is a computer programmer working independently as a contractor for various companies, but he has not saved for retirement. While his income varies he usually earns about $90,000 annually. Chrisanna is hoping that she and Fernando can retire when they both are age 65.

2. What withdrawal rate might they use to avoid running out of money during retirement?