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.
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 →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 →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.
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