Episode overview

Why You're Still Broke Even If You Make Good Money Feat. David Bach

Ed Mylett Show · 4 August 2026 · 1h 1m · 3 Egleze moments

What happened in this episode?

Ed Mylett interviews personal finance author David Bach about building wealth through automated saving, reducing consumer spending and prioritising long-term investing over short-term lifestyle upgrades. Bach argues that “pay yourself first” works best when contributions are automated, pointing to the scale of US retirement assets and suggesting many people underestimate how small daily spending can compound over decades. Mylett endorses the approach, contrasting it with wealth strategies built on heavy leverage and debt, which he says has bankrupted more people he knows than it has enriched.

The pair discuss practical steps for listeners who feel behind: cancelling unused subscriptions, tracking spending, and increasing 401(k) contributions (including incremental increases). Bach also addresses retirement planning mechanics, including Roth versus traditional 401(k) choices, and recommends financial planning tools or hourly advice to estimate when someone can stop working.

Bach introduces health-related considerations for retirement timing, claiming US “health expectancy” is 63 and that US life expectancy has been declining, which he says strengthens the case for retiring earlier if possible. He additionally argues that home ownership remains a primary driver of wealth, citing a large homeowner–renter net worth gap and warning that long-term rent inflation can undermine the case for renting.

Late in the episode, Bach proposes a tax-policy change: a flat tax on IRA withdrawals after age 60 to encourage earlier drawdowns and increase economic activity.

What are the key points?

Bach says wealth-building works best when saving is automated (“pay yourself first”).
He argues many people could redirect small daily spending and unused subscriptions into long-term investing.
Mylett warns against relying on leverage and debt as a primary wealth strategy, citing friends who went broke.
Bach discusses Roth versus traditional 401(k) contributions and recommends doing a basic financial plan to assess retirement readiness.
He claims US “health expectancy” is 63 and that life expectancy is falling, affecting retirement planning.
Bach argues home ownership is a major wealth escalator and cites a 43-times homeowner–renter wealth gap.
Bach proposes a flat tax on IRA distributions after age 60 to encourage earlier withdrawals.

Which topics are covered?

Health, Longevity & Biohacking Society Money Politics

How is this page sourced?

Programme: Ed Mylett Show
Published: 4 August 2026
Duration: 1h 1m
Original episode: Open the original source ↗

Egleze verifies the speaker, source and timestamp for each linked moment. Unless a moment is explicitly marked independently verified, statements remain attributed claims by the named speaker rather than established facts.

Watch original episode More from Ed Mylett Show

3 moments from this episode

Source-linked · editorially selected

Health, Longevity & Biohacking

Bach says US 'health expectancy' is 63, with life expectancy falling

at 42:20 · Attributed speaker claim

"I learned about this thing called health expectancy. So health expectancy is not the same as life expectancy. Health expectancy is the age that the World Health Organization and every government around the world knows what age on average is someone going to get sick in a country and have a permanent disability that affects the rest of their life. And in the United States, the age is 63."

David Bach says that, in research for an updated edition of The Automatic Millionaire, he came across 'health expectancy' — the average age at which people develop a lasting disability — and puts the US figure at 63. He adds that US life expectancy is "76" and "going down, not up", arguing people should plan to retire earlier to maximise healthy years.

Read this moment → Check original at 42:20 ↗

Money

David Bach says US should apply flat tax on IRA withdrawals after 60

at 51:11 · Attributed speaker claim

"I think the government should change the tax laws on IRA distributions to a flat tax. And I think if the government were to change the taxes on IRA accounts after the age of 60 and they pick a number 10% 12% or 15%. More people would access their retirement accounts sooner."

Personal finance author David Bach tells Ed Mylett he thinks the US should replace the current income-tax treatment of IRA withdrawals with a flat rate after age 60. Bach argues it would prompt retirees to withdraw savings earlier, boost consumer spending and bring tax receipts forward; he says he has published material at Iraflatax.com.

Read this moment → Check original at 51:11 ↗

Money

Bach argues home ownership remains key, citing a 43-times wealth gap

at 54:28 · Attributed speaker claim

"Rents have skyrocketed across the United States. And so is the value of home ownership. So, you know, 20 years ago, homeowners were worth 40 times more than renters. Today, homeowners are worth 43 times more than renters."

David Bach pushes back on online claims that renting is financially superior, saying people cannot "live inside Bitcoin" and warning that rent rises over time. He cites a large wealth gap between homeowners and renters, says first-time buyers are now typically 40, and frames home ownership as central to building "generational wealth".

Read this moment → Check original at 54:28 ↗