Debit and deficits continue to be in the news. This includes funding levels for public state pensions. But what does it mean to be underfunded or overfunded? What discount rate or investment return assumptions are they using and are they realistic? Derek Moore discusses and simplifies what makes up this discussion and ways that they could get on track.   What makes a pension underfunded? Are investment return expectations realistic? Which states are the worst regarding funding levels? Differences between defined benefit plans and defined contribution plans Options for pensions include cutting benefits, raising contributions, or increasing investment returns Differences between public pension discount rates and private corporation's investment assumptions Pension plans in a low interest rate environment Is there any hope for states to get their funding percentages higher?   Mentioned  in  this  Episode:   State pensions funding gap https://www.pewtrusts.org/en/research-and-analysis/issue-briefs/2019/06/the-state-pension-funding-gap-2017#targetText=States%20reported%20a%20total%20liability,funding%20gap%20of%20%241.28%20trillion.   How well funded is your states pension? https://taxfoundation.org/state-pension-plan-funding-2019/   Podcast explaining negative yielding bonds https://razorwealth.com/wacky-negative-yielding-bonds-and-need-for-alternative-income/   Book: Broken Pie Chart https://amzn.to/31oy1hE   Razor Wealth Management www.razorwealth.com  

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