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TechThe Motley Foolabout 8 hours ago

2025 tax returns can inform retirement planning

Tax filers can use their 2025 return data to assess retirement readiness by compiling bank, investment, and loan statements into a personal balance sheet. Net worth is calculated as assets minus liabilities and should ideally support three to six months of living expenses. A negative net worth does not preclude retirement planning and may indicate a need for a six-month buffer. Financial data from tax returns helps identify cash reserves and long-term financial health.

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