Trump issues tax refund update to millions of Americans: 2026 checks will be ‘substantially’ bigger than before. Should you spend or save it?

Trump also urged Americans to recognize what he described as the benefits of the legislation.

“So, when you get your Tax Refund, think about what a wonderful President you have — NO TAX ON TIPS, NO TAX ON SOCIAL SECURITY FOR OUR GREAT SENIORS, NO TAX ON OVERTIME, INTEREST DEDUCTIONS ON CAR LOANS AND MUCH MORE,” he wrote.

While the message may sound promotional, experts do expect refund amounts to trend higher this season. A study by investment firm Piper Sandler projects that refunds could average about $1,000 higher than usual this year — with some taxpayers potentially seeing refunds of an extra $10,000 or more (2).

Meanwhile, the Tax Foundation has estimated that the One Big Beautiful Bill Act reduced individual taxes by $129 billion for 2025, noting that refunds “will undoubtedly rise for millions of taxpayers” this season (3).

According to the IRS, taxpayers generally have until April 15 to file their returns (4). Those who file electronically and opt for direct deposit typically receive refunds within three weeks (5).

Still, Trump offered a characteristically simple piece of advice to taxpayers expecting a larger check.

“Don’t spend all of this money in one place!” he wrote.

For many households, that raises an immediate question: What’s the smartest way to use a sudden cash infusion?

Whether you’re thinking about shoring up your finances, preparing for uncertainty or putting that extra money to work, here are a few ways Americans may consider investing their potential windfall.

‘The best thing to do,’ according to Warren Buffett

The U.S. stock market has been a powerful engine of wealth creation. Trump has pointed to that strength, recently saying that “the only thing that’s really going up big? It’s the stock market and your 401(k)s (6).”

The benchmark S&P 500 returned 16% in 2025 and has gained roughly 75% over the past five years.

Of course, consistently picking winning stocks isn’t easy. That’s why legendary investor Warren Buffett argues that most people don’t need to pick individual companies at all to benefit from the stock market’s long-term growth.

“In my view, for most people, the best thing to do is own the S&P 500 index fund,” Buffett has famously stated (7). This approach gives investors exposure to 500 of America’s largest companies across a wide range of industries, providing instant diversification without the need for constant monitoring or active trading.

The beauty of this approach is its accessibility — anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time with tools like Acorns, a popular app that automatically invests your spare change.

Signing up for Acorns takes just minutes: Link your cards and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio.

With Acorns, you can invest in an S&P 500 ETF with as little as $5 — and, if you sign up today with a recurring deposit, Acorns will add a $20 bonus to help you begin your investment journey.

Protect your wealth with a time-tested safe haven

If a larger refund is headed your way, putting a portion into hard assets that have stood the test of time could be a strategic move — especially in uncertain economic environments.

As Ray Dalio, founder of the world's largest hedge fund, Bridgewater Associates, recently said, “the most important thing is to have a well-diversified portfolio.”

And when it comes to hedging against “bad times,” he has repeatedly pointed to one asset in particular: gold.

In an interview with CNBC, Dalio said that “people don't have, typically, an adequate amount of gold in their portfolio,” adding that “when bad times come, gold is a very effective diversifier.”

Gold has long been considered a go-to safe haven. It can’t be printed out of thin air like fiat money and because it’s not tied to any single currency or economy, investors often flock to it during periods of economic turmoil or geopolitical uncertainty, driving up its value.

Despite a recent pullback, gold prices have climbed more than 70% over the past 12 months.

Other prominent voices see further potential. JPMorgan CEO Jamie Dimon recently said that in this environment, gold can “easily” rise to $10,000 an ounce.

One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.