
Hello there! Let me introduce myself. I’m Lindsey Bell, the Chief Investment Strategist at Ally Invest. My role is to analyze the financial environment and interpret how market trends could affect our customers. I hope you’re taking care of yourself and that you and your loved ones are safe and well.
It’s been an unnerving few weeks, to say the least, and I think everyone is struggling to quantify the impact of the new coronavirus (COVID-19). To that end, we’ve seen some historic days in the markets and we’d like to share a few thoughts to help you with some of the financial questions you may be asking yourself right now.
Market Volatility and Its Effect on Investments
Stocks have swung in dramatic fashion, and there is a lot of uncertainty out there with the coronavirus outbreak. The S&P 500 has dropped 30% in a month, and the Federal Reserve Board (Fed) has taken extraordinary measures to boost confidence. There is even talk of fiscal stimulus from the government.
All of that market volatility may be unsettling, but don’t let it shake you. You have an investing plan for a reason: to be your guiding light during periods like this. If you’re already invested, remember that it’s never good to make any decision — investing or otherwise — under duress. Your future self will thank you for this. We know the pendulum swings, and that markets hit rough patches every once in a while.
Despite the current decline, history shows bear markets eventually recover. Since 1946, the S&P 500 has weathered 12 bear markets (declines of 20% or more from a 52-week high) on its way to 7% annualized gains over that period. Put another way – the market tends to stabilize over time.
Budgeting and Saving
In times like these, everyone is thinking of tightening their belts, and it may make sense to revisit your budget and adjust your savings strategy for the next few months. For example, if a portion of your monthly budget went to dining out, entertainment and commuting expenses, you may want to redirect those funds towards savings or other urgent priorities.
If you’re looking for a simple budgeting model to work from, consider the 50/30/20 budget. Here’s how it works: 50% of your income goes toward needs like groceries, gas and rent/mortgage; 30% goes toward wants; and 20% is allocated toward savings and debt repayment.
Your savings account is still a safe place to grow your FDIC-protected emergency fund, giving you the ability to access funds quickly if needed and to get the chance to earn some interest on your money.
Rethinking Mortgage and Auto Loan Payments
It may not feel like the right time to make a major financial decision, but the Fed’s recent rate cuts could work to your advantage if you’re currently paying off a home or auto loan.
If you’ve been searching for a low rate or looking to refinance, this could be your opportunity to lower your monthly payments. It’s worth reaching out to your loan provider to find out what your options are. If you are able to spend less on your monthly mortgage payment, you can redistribute those savings to other needs.
You may also want to also reconsider refinancing your auto loan. It’s an option some consumers forget about since mortgages get all the refinancing attention, but it’s one that could save you some cash. Just consider any prepayment fees you may have to pay to refinance before making your decision.
We’re here for you.
First and foremost, take care of yourself and your loved ones in these turbulent times. Stay safe, wash your hands, and do your best to adapt to this new normal. As your ally, your financial health is our first priority…and we’re here to help however we can. We’ve recently announced a relief package that may help you navigate financial hardships over the next few months. We’re also closely monitoring the markets, and we’ll continue to update you as this economic situation evolves. We know there’s a lot of uncertainty out there, but we are determined to navigate the challenges together.
The opinions expressed here are not meant to be used as investing advice. For more information, visit our website.

Lindsey Bell, Ally’s chief markets & money strategist, is an award-winning investment professional with a passion for personal finance and more than 17 years of Wall Street experience. Bell’s unique ability to connect the dots between data and real life and craft bite-sized money ideas that people can use and apply stems from her deep background as an analyst, researcher and portfolio manager at organizations including J.P. Morgan and Deutsche Bank. She is known for demonstrating why and how an understanding of all things money improves a person’s finances and overall wellbeing. An ongoing CNBC contributor, Bell empowers consumers and investors across all walks of life and frequently shares her insights with the Wall Street Journal, Barron’s, Kiplinger’s, Forbes and Business Insider. She also serves on the board of Better Investing, a non-profit focused on investment education.
Comment on this article
Comments
william h. on April 1, 2020 at 11:11am
thanks
Ally on April 1, 2020 at 11:12am
Hi William, thanks for reading.
Al W. on April 1, 2020 at 11:38am
Very good and understandable ideas and 'wisdom' from past major financial events. Thank you, Al
Ally on April 1, 2020 at 11:39am
Hi Al, we love hearing this! Thank you for your comment.
Dolores S. on April 1, 2020 at 12:36pm
If I were to refi my mortgage would any fees involved be included in the loan?
Ally on April 1, 2020 at 12:40pm
Hi Dolores, please contact our team at 1-855-256-2559. One of our teammates will be more than happy to help answer your questions.
LINDA A. on April 1, 2020 at 1:08pm
I HAVE SEVERAL ACCOUNTS WITH ALLY WHO CAN I SPEAK TO THAT KNOWS THE BANKING POLICY AS FAR AS EACH ACCOUNT'S AMOUNT BEING COVERED. I HAVE 3 CD'S AND A MONEY MARKET WITH YOUR BANK - SHOULD I TRANSFER SOME MONEY TO ANOTHER BRANCH.
Ally on April 1, 2020 at 1:10pm
Hi Linda, please give us a call at 1-877-247-2559 or chat with us at ally.com, and one of our team members will be more than happy to help answer your questions.
Ramon D. on April 1, 2020 at 1:28pm
Is good for nothing, you don't help anyone.?why you let your client to pay only the principan in yours loan and dicharge the interesrt in this time cancel the interest in a time
Francisco &. on April 1, 2020 at 2:37pm
I'm a little confused about this that was sent to my email. Does this mean more interest for us?
Kathlene s. on April 1, 2020 at 2:43pm
I need 120 day extension
Ally on April 1, 2020 at 2:44pm
Hi Kathlene, we’re committed to supporting our customers during the COVID-19 crisis. You can learn more about how to get started here: https://www.ally.com/coronavirus-response. You can also defer your Auto payment online at ally.com/auto – just log in with your username and password.
Debra G. on April 1, 2020 at 2:45pm
R u guys deferring our car payments if so will it b without penalty..
Ally on April 1, 2020 at 2:46pm
Hi Debra, existing Ally Auto customers will be allowed to defer payment for up to 120 days and no late fees will be charged during the deferral period. You can also defer your Auto payment online at ally.com/auto – just log in with your username and password. You can also learn more here: https://www.ally.com/coronavirus-response
Shirley P. on April 1, 2020 at 2:47pm
Would it benefit me to refinance my auto loan?
Cathy c. on April 1, 2020 at 2:49pm
What can I do about my payment for this month? I'm really in a hard spot I lost my job and don't know when I'll get back to work.
Ally on April 1, 2020 at 2:50pm
Hi Cathy, we’re sorry to hear this. Rest assured, Ally is committed to supporting our customers during the COVID-19 crisis. You can learn more about how to get started here: https://www.ally.com/coronavirus-response. You can also defer your Auto payment online at ally.com/auto – just log in with your username and password.
Kelly P. on April 1, 2020 at 3:33pm
I wish people would quit saying a virus caused anything. It was people in our governments response that caused all of the damage and suffering that will last quite a while.
Lynette S. on April 1, 2020 at 4:06pm
I would like to take advantage of any help we can get from programs that are available. If you could please let us know what we need to do to apply I would highly appreciate it thank you Please send me a link to apply if that’s possible
Ally on April 1, 2020 at 4:08pm
Hi Lynette, you can learn more about how to get started here: https://www.ally.com/coronavirus-response. You can also defer your Auto payment online at ally.com/auto – just log in with your username and password.
Brenda S. on April 1, 2020 at 4:36pm
I have read through this and am thankful for the 120 days . I have been out of work now for a week, but am already feeling the pressure to keep all my bills paid on time with no income . I realize this is only a temporary fix , but it will give me time to seek other employment. Thank you very much.
Ally on April 1, 2020 at 4:37pm
Hi Brenda, thank you for the note and for being an Ally customer. ❤
Mark A. on April 1, 2020 at 4:40pm
Thank you Lindsey!!
Ally on April 1, 2020 at 4:41pm
Thanks for reading, Mark.
davida r. on April 1, 2020 at 5:04pm
Would like to ask Lindsay a question. Is there an email for her?
Ally on April 1, 2020 at 5:05pm
Hi Davida, if you’ll email your question to allycommunity@ally.com, we’ll share it with Lindsey and she may be able to answer it in a future week!
Cherilu w. on April 1, 2020 at 5:07pm
I know about ally auto not easy sure and just stay awhile I have to patient forward see when reopen.
George W. on April 1, 2020 at 5:36pm
I would like to know if I could get a better interest rate on my vehicle loan. It’s currently at 11%. That’s very high, I’ve been with Ally for quite some time and I feel it’s possible I can get a better rate on my vehicle loan.
Ally on April 1, 2020 at 5:37pm
Hi George, if you have questions about your existing Ally financing please give us a call at 888-925-2559. If you would like to refinance another loan please visit clearlane.com/refinance to learn more.
Michael S. on April 1, 2020 at 5:49pm
Thank you L. O. R. D
Ally on April 1, 2020 at 5:51pm
❤
Matthew s. on April 1, 2020 at 6:33pm
I'm not working and need help for my bills
Ally on April 1, 2020 at 6:34pm
Hi Matthew, we’re taking multiple steps to support our customers and communities during the global COVID-19 crisis. Learn more about our relief package here: https://www.ally.com/coronavirus-response
Mary G. on April 1, 2020 at 6:47pm
I understand what’s going on in our financial market but are you willing to put at least 3months payment in the back of the loan , like the mortgage companies are doing. I have never been delinquent in paying my bills but now I am really concerns because I have not been working. Please let me know how Ally is going to help us.
Helen H. on April 1, 2020 at 6:48pm
Thank you so much not only for all this information but for all you are doing for us your clients. God bless and keep you all safe also.
Ally on April 1, 2020 at 6:48pm
Hi Mary, existing Ally Home customers will be allowed to defer payment for up to 120 days and no late fees will be charged during the deferral period. Please give our team a call at 1-855-256-2559 to activate this, or learn more here: https://www.ally.com/coronavirus-response
Rosalinda D. on April 1, 2020 at 8:31pm
I submitted an email last week requesting an adjustment to our interest rate if at all possible in this uncertain time. Our working hours were reduced due to the Covid-19 pandemic. Although deferred payment are offered it would help us if monthly payments may be reduced. Thank you & hope to hear from you.
Barbara K. on April 1, 2020 at 8:34pm
Lindsey , a pleasure to hear your side of the current ups and downs in the market ,,and telling about past improvements...I have a financial advisor and listen carefully ,,,but it was good to take time to read your side of the situation,,,
Ally on April 1, 2020 at 8:35pm
Hi Barbara, we love hearing this. Thank you for reading.
Dana on April 2, 2020 at 12:51am
How about advise people to not take on consumer debt, stick to a budget & live beneath their means? And count the costs before refinancing. How long will it take to recoup the closing costs? These questions are never discussed by the so-called experts.
Antonio on April 2, 2020 at 6:02am
How about people very close to retirement? Retiring within the year.
Philip M. on April 2, 2020 at 8:10am
I,ve been with ally bank going on 20 years; retired from northeast utilities in 2010 after 30 years with the company; have pension and social security direct deposit with ally; money market and saving rates well above average; I feel safe and secure with ally
Ally on April 2, 2020 at 8:15am
We love our customers and love hearing this! Thank you for being a part of the Ally family, Philip.
Enrico S. on April 2, 2020 at 12:46pm
How true is refinancing? I’m doubtful about this, it might be another scam
Ally on April 2, 2020 at 3:42pm
Thank you for being an Ally customer, Helen. ❤
Johnetha R. on April 2, 2020 at 6:38pm
I would like for someone to call me tomorrow around 10 am to discuss getting pre qualified for a home. Also I am with Ally, and I would like to discuss refinancing my vehicle.
Ally on April 2, 2020 at 6:39pm
You can learn more about getting started with Ally Home Loans here: https://www.ally.com/home-loans/getstarted/ As for refinancing your vehicle, if you have questions about your existing Ally financing please give us a call at 888-925-2559. If you would like to refinance another loan please visit clearlane.com/refinance to learn more.
John M. on April 7, 2020 at 11:45am
I've left my small portfolio with Ameritrade totally alone during previous crises such as this and will do so again. But I would like to do some minor investing during this current period. Is there any way to do that through Ally or would I need to transfer money to Ameritrade? Thank you. Might mention it is nice to get confirmation from a knowledgeable source that staying the course is best. john miles
Ally on April 7, 2020 at 12:12pm
Hi John, if you’ll give us a call at 1-855-880-2559 one of our team members will be more than happy to help answer your questions.
Ally on April 9, 2020 at 1:02pm
Thanks for reading, Wanda.
Wanda M. on April 9, 2020 at 11:53pm
good info
G e. on April 12, 2020 at 8:34am
Can you guys make my payments cut my payments and half for a few months it will help me out a lot I can send half and half that would help instead of me deeper and I don't want to defer my payments but I like to continue with small payments of 375 a month until I can get back on my feet
Ally on April 12, 2020 at 9:02am
Please give us a call at 1-888-925-2559, one of our team members will be more than happy to discuss your options.