Residential Assisted Living and the Silver Tsunami – By Gene Guarino

(slow guitar music) – Hey, this is Gene and I’m from the Assisted Living Network and what I want to share with you today is a little bit about the silver tsunami. When I say the silver tsunami it’s not a wave in the ocean. It’s about seniors. And as we all know the baby boomers, they’re here. There are 77 million baby boomers. There’s 10,000 people a
day that are turning 65 and 4,000 a day are turning 85. And people are living longer, they’re healthier than ever. And as they age they may not be able to take care of themselves
the way they used to. Now, those of us who are in the industry of assisted living, we understand this fact because we see it and we face it every single day. But there’s a lot of people out there that are aging, and they’re
seeing their parents age, and they’re just not sure what to do. And we in the industry of assisted living, we share with people the opportunity to be taking care of those parents, or maybe of themselves. I just had a phone call today from somebody that needed a
placement for their son, which is kind of sad
when you think about it, but this son is a lot younger, in his twenties and he
needs total assisted living. Now normally we deal with assisted living for the elderly, and that’s why we call it the silver tsunami of seniors, because with 77 million baby boomers, and many of those people lasting longer and aging healthier than ever before, as they get to be 80,
and 85, and 90 years old, now they start to need that assistance, that help. Now if they can stay at home, and they’d rather stay
at home for most of them, they can have somebody
come into the house, check on them, stay with them, be with them for a few hours, or maybe it ends up being all day long and then when the kids come back, who are 50 and 60, from work, now they can come and visit mom, make sure she’s good or dad and make sure he’s good. And at some point they
may need even more help, where they can’t come and visit every day or it just gets too expensive for somebody to come in
on an hourly basis 24/7, so now it’s time to move mom or dad into assisted living. Now this silver tsunami
of baby boomers is coming. They’re here today, but when I say coming, meaning as they age, they’re coming to assisted living. They’re moving into homes, whether they be big box facilities or individual homes and in future shows we’ll talk about the benefits of each one of those, but when we talk about the need that is here, it is absolutely huge, and I want to give you
some perspective on this. There is no stopping it. When we talk about the
silver tsunami of seniors, they’re here, they’re not moving away, they’re not going away. They’re living and
lasting longer than ever. But beds, beds that are in existence, whether they’re available in full, or whether they’re not, the reality is beds that are in existence today is about 1.4 million
beds in America today. But when you count it up and think through the math, 4,000 people every single day, turning 85 years old. Now that’s 30 days, 120,000
people every single month. 12 months, that’s 1.4
million new 85 year olds every single year. Now people do pass away, people last longer than that. They don’t just die at 85, they don’t just move in at 85. Not everybody needs assisted living, but absolutely there is needs for tens of thousands of beds additional to what is currently existing today on a daily or weekly basis. Now that opportunity is
what we take advantage of and we help people with when we talk about assisted living in a residential setting. But this silver tsunami of baby boomers is an opportunity. And we could look at every thing as a crisis on one side or an opportunity on the other. It’s that same coin
just getting on the edge whether you look on one side or the other is up to you. I tend to look at things
as an opportunity. And the opportunity here is that these seniors need help, they need a place to live, they need somebody to
help take care of them, and the kids or the grandkids want to be kids and grandkids again. They want to come and visit, not to be the full-time caregiver for mom and dad. The opportunity is huge
because the amount of people that are lasting and aging in place is growing and growing and growing. But also, family size has changed dramatically over the last 50 years. When I was a kid, we had seven kids in the family, seven kids, two parents that filled the car or two. Today, if you’ve got three or four kids, that’s considered to be a big family. Seven kids would be freakish, almost, in this world today, but three or four is a big family. Most have one or two. So now go forward another 40 years. If the parents who are alive today only have one or two children to take care of them, well their burden is
going to be even higher. They can’t just quit their job and take care of mom and dad, they’re going to have to provide that care one way or the other, and if they can’t do it themselves, they’re going to put them into a home or pay somebody to come in and visit them. We’re right back to where we started. The need is high today. The baby boomers are aging in place and the need is growing exponentially. It is a silver tsunami of seniors. And as we go on, and more and more people
come into this cycle, the opportunity is bigger and bigger. Now, with this silver
tsunami that is coming our way that is here today for a lot of us we’re dealing with it right now with our own parents, and we’re in a situation where it may actually cost us money. As I share with people
about assisted living and the opportunities in it, one of the things that
keeps coming to mind and I make sure to share
with every body that I can, is that you are going to get involved one way or the other. You’re either going to
own the real estate, the business, or you’re
going to be living in somebody else’s facility writing a check to have somebody take care of you. Now if you own that business, if you own and operate a residential assisted living home or whether it be a big box or a small facility, you could move in and live for free. You don’t have to charge yourself. And the burden to the kids, again I was speaking
to somebody just today, who’s currently spending $7500 a month to take care of their child. That’s not even their parent, it’s their child. It’s kind of in reverse of what we typically do with assisted living. But 7500 a month is $90,000 a year. In addition to all their
other life expenses. That’s a lot. And I always want to share with people well in advance because right now it’s almost too late to share with her, “Hey, you can open up your own home and have your son move
in and live for free.” But that’s the reality for you and me, we can open the home right now. We can have a tremendous business in cash flow right now, and when it’s time for us, or a parent, or a loved one to move in, we don’t have to charge them anything. Or we can charge them much less. They can move in, be well taken care of, and this burden, this crisis for others in this silver tsunami of opportunity, is no longer. We’ve turned that crisis
into an opportunity and that’s what it’s all about. This silver tsunami of seniors, it’s coming, it’s here. The question is what are
you going to do about it? I guarantee you’re going to get involved one way or the other. I look forward to sharing with you on the next show, and I want to always encourage you to do good and do well. If you like what you’ve seen and heard, please subscribe.

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