ABC-7 at 4: Christmas Price Index

El Paso, TX (KVIA)-The PNC Christmas Price Index shows the current cost for one set of each gift given in the song "The Twelve Days of Christmas." The Christmas Price Index was first calculated in the mid-1980s, and the gift costs around $20,000. Today, it's closer to $47,000. While the index is not an exact index of inflation, it is a lighthearted example of how inflation affects the costs of goods and our economy each year. According to this year's index, we should watch out for the rare turtle doves - they have seen the most significant price hike this year ($750), jumping a staggering 25% due to limited supply. 

Service prices have increased more than goods, but both are up. Technology comes with a price – shipping and packaging costs haven't eased since the pandemic.

Buying all 12 gifts from the song online is a whopping 4.8% more expensive than in 2022, thanks to those high shipping and packaging costs that have yet to ease since the pandemic. 

Here are some tips for factoring higher costs into someone's investments and retirement plan:

- Look at your spending patterns. Are you consistent?

- Remember that inflation ties into your budget. Do you have a firm budget?

- The cost of living in different areas and communities. Be strategic where you live.

- The impact of downsizing your home. Could that make a difference in retirement?

- The condition of your portfolio. Are you balanced?

Finding the right balance can be challenging but critical for investors, especially those nearing or already in retirement.

A few essential items to look at are:

- Is your investment portfolio diversified? Diversification is critical to managing risk. Especially as we age, the question needs to be asked: Why are you still so at risk?

- Determine your risk tolerance: Assess your risk tolerance based on your financial goals, time horizon, and personal circumstances. Make sure you are comfortable with that risk.

- Review and rebalance your portfolio periodically. Stay educated and work with an advisor who is informed and updated with current market trends and investment products.

It would help if you had a game plan for your retirement, and you want to be comfortable in retirement, knowing you will have enough. A big part of that is knowing you have a solid income strategy to deal with inflation and enough to cover your monthly expenses with a good emergency fund. We have a tool we use called Retirement Analyzer. This advanced planning software answers how much I need to retire and whether my money will last.

Mirau Capital Management is now offering a free complimentary copy of Brian Mirau's new book titled, "Smart Money for the Backside of Life," for anyone wanting to set a visit. In my book, I discuss many different aspects of retirement that folks deal with on the Backside of Life.

 Text "Retire" to (915) 233-2904 for your free Retirement Analysis, and you can set a visit to receive a copy of Brian's new book, Smart Money for the Backside of Life. Again, that number is (915) 233-2904, and text "Retire". You can also visit their website online at www.miraucapital.com .