How One Woman Became a 401(k) Millionaire
Saving early and implementing a smart investing strategy helped Alison Sowell make big gains over time.
- (opens in new tab)
- (opens in new tab)
- (opens in new tab)
- Newsletter sign up Newsletter

The number of investors with at least $1 million in their 401(k)s reached a record 233,000 in late 2019, and IRA millionaires totaled 208,000, according to Fidelity Investments, which tracks 30 million retirement plans. Thanks to an early start on saving and a disciplined strategy, Alison Sowell, 51, is a proud member of the club, with more than $1 million saved for retirement through her contributions to workplace plans. Last year, she was recognized by Jackson, Grant Investment Advisers as a “401(k) Champion” for her diligence.
Sowell, who lives in San Jose, Calif., began her journey to millionaire status when she was 16 years old. She worked for Nordstrom, and her manager convinced her to set aside some of her earnings in the company’s 401(k) and profit-sharing plan. “He said, ‘Imagine writing yourself today a future check for $1 million when you retire,’ ” says Sowell, who is now a senior executive administrator for a technology company.
Sowell is living proof that a setback doesn’t have to derail your long-term plan. When she left her job at Nordstrom after 10 years, she cashed out about one-fourth of her savings in the retirement account to pay off credit card debt. “In the long run, I think I did myself a disservice. I lost out on some money that I was going to use to pay debt because of taxes and penalties, and I lost out on the future earning power of that money in the stock market,” she says.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
But she has always made the maximum allowable contribution to her 401(k), wherever she has worked. And now that she’s older than 50, she’s putting in catch-up contributions, too. “Finally seeing my balance go over the $1 million mark was a really good feeling. I probably won’t retire anytime soon, but if I do need to retire early, I have some money to draw on that is well invested and should last,” she says.
Lisa has spent more than15 years with Kiplinger’s Personal Finance and heads up the magazine’s annual rankings of the best banks, best rewards credit cards, and financial-services firms with the best customer service. She reports on a variety of other topics, too, from retirement to health care to money concerns for millennials. She has shared her expertise as a guest on the Today Show, CNN, Fox, NPR, Cheddar and many other media outlets around the nation. Lisa graduated from Ball State University and received the school’s “Graduate of the Last Decade” award in 2014. A military spouse, she has moved around the U.S. and currently lives in the Philadelphia area with her husband and two sons.
-
-
Long-Term Care Planning vs. Taxes: Finding a Healthy Balance
Many families discover that trying to mitigate the cost of long-term care can conflict with another common retirement concern — reducing taxes for retirees and their heirs.
By John M. Graves, Esq., IAR, Agent • Published
-
For a Concentrated Stock Position, Ask Your Adviser This
There can be advantages to having a lot of stock in one company, but ‘de-risking’ can help avoid some significant disadvantages.
By Robert Gorman • Published
-
As the Market Falls, New Retirees Need a Plan
retirement If you’re in the early stages of your retirement, you’re likely in a rough spot watching your portfolio shrink. We have some strategies to make the best of things.
By David Rodeck • Published
-
Retirees: Your Next Companion May Be a Robot
happy retirement Robots may help fill the gap left by a shortage of humans to help older adults live independently.
By Alina Tugend • Published
-
Using Your 401(k) to Delay Getting Social Security and Increase Payments
retirement Your 401(k) can be a bridge from retirement to higher monthly income.
By Elaine Silvestrini • Published
-
How Do I Stop Robocalls From Scamming Me?
retirement The scammers have automated their efforts to separate you from your money. We have ways to make it stop.
By Elaine Silvestrini • Published
-
A Kiplinger-ATHENE Poll: Retirees Are Worried About Money
Making Your Money Last Concerns about recession, inflation and health care costs weigh on retirees and near retirees.
By the editors of Kiplinger's Personal Finance • Published
-
Grandparent Scams Get Victims in Their Hearts
Scams If you get a call from someone who claims to be your grandchild in trouble and needing money right away, be wary. Don’t send any money or give any information until you verify the story.
By Elaine Silvestrini • Published
-
Tech Support Fraud Targets Seniors
retirement Get a message offering help with a computer problem you didn’t think you had? It’s probably a scammer looking for your money and personal information
By Elaine Silvestrini • Published
-
What to Do With Money in a Former Employer’s 401(k)
Basics Leave it behind, move it to your new job’s plan, or roll it over to an IRA. Each of the options has pros and cons.
By Emma Patch • Published