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Working Americans will soon see a sizable financial boost \u2014 all thanks to changes tied to President Donald Trump\u2019s \u201cOne Big Beautiful Bill,\u201d according to Treasury Secretary Scott Bessent.<\/p>\n
Speaking with a reporter in Pennsylvania on Dec. 10, Bessent said an estimated $100 billion to $150 billion in tax refunds could hit bank accounts in the first quarter of 2026.<\/p>\n
Bessent said that Trump has fought harder than anyone for his signature initiatives in the One Big Beautiful Bill, pointing to provisions such as no tax on tips, no tax on overtime and auto deductibility (1).<\/p>\n
\u201cThe bill was passed in July. Working Americans didn\u2019t change their withholding, so they\u2019re going to be getting very large refunds in the first quarter. So I think we\u2019re going to see $100 to $150 billion of refunds, which could be between $1,000 and $2,000 per household.\u201d<\/p>\n
After that, once withholding levels adjust, workers could see what he described as a \u201creal increase\u201d in their wages.<\/p>\n
The White House echoed that outlook. Press Secretary Karoline Leavitt said the upcoming refund season is projected to be the largest on record.<\/p>\n
\u201cAmericans can also expect another boost to their bank accounts in the months ahead as 2026 tax refund season is upon us after the holidays and it’s projected to be the largest ever,\u201d Leavitt said during a Dec. 11 press briefing (2).<\/p>\n
For many households, that raises an immediate question: What\u2019s the smartest way to use a sudden cash infusion? Whether you\u2019re 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.<\/p>\n
The U.S. stock market has been a powerful engine of wealth creation. Trump has pointed to that strength, recently saying, \u201cthe only thing that\u2019s really going up big? It\u2019s the stock market and your 401(k)s (3).\u201d<\/p>\n
The benchmark S&P 500 is up about 16% year to date and has gained roughly 86% over the past five years.<\/p>\n
Of course, consistently picking winning stocks isn\u2019t easy. That\u2019s why legendary investor Warren Buffett argues that most people don\u2019t need to pick individual companies at all to benefit from the stock market\u2019s long-term growth.<\/p>\n
\u201cIn my view, for most people, the best thing to do is own the S&P 500 index fund,\u201d Buffett has famously stated (4).<\/p>\n
This approach gives investors exposure to 500 of America\u2019s largest companies across a wide range of industries, providing instant diversification without the need for constant monitoring or active trading.<\/p>\n
The beauty of this approach is its accessibility \u2014 anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time with tools like Acorns<\/a>, a popular app that automatically invests your spare change.<\/p>\n Signing up for Acorns takes just minutes: Link your cards and Acorns will round up each purchase to the nearest dollar, investing the difference \u2014 your spare change \u2014 into a diversified portfolio. With Acorns, you can invest in an S&P 500 ETF with as little as $5 \u2014 and if you sign up today with a recurring deposit, Acorns will add a $20 bonus<\/a> to help you begin your investment journey.<\/p>\n Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)<\/a><\/p>\n Beyond stocks, real estate has long been another cornerstone of wealth-building in America.<\/p>\n In fact, Buffett often points to real estate when explaining what a productive, income-generating asset looks like. In 2022, Buffett stated that if you offered him \u201c1% of all the apartment houses in the country\u201d for $25 billion, he would \u201cwrite you a check (5).\u201d<\/p>\n Why? Because regardless of what\u2019s happening in the broader economy, people still need a place to live and apartments can consistently produce rent money.<\/p>\n Real estate also offers a built-in hedge against inflation. When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts with inflation.<\/p>\n Of course, you don\u2019t need $25 billion \u2014 or even to buy a single property outright \u2014 to invest in real estate. Crowdfunding platforms like Arrived<\/a> offer an easier way to get exposure to this income-generating asset class.<\/p>\n Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100<\/a>, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.<\/p>\n The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you\u2019d want to purchase and then sit back as you start receiving any positive rental income distributions<\/a> from your investment.<\/p>\n Another option is First National Realty Partners (FNRP)<\/a>, which allows accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibilities of being a landlord.<\/p>\n With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart<\/a>, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.<\/p>\n Simply answer a few questions \u2014 including how much you would like to invest \u2014 to start browsing their full list of available properties<\/a>.<\/p>\n You don\u2019t need a massive investment portfolio to start building wealth. Even your spare cash \u2014 such as a tax refund \u2014 can earn income, rather than sitting idle in a low-yield account.<\/p>\n However, one challenge is the shifting interest-rate environment. When interest rates are changing, high-yield savings accounts can feel like a moving target. You might be earning a competitive APY one month, only to have your bank quietly lower it the next. That\u2019s the trade-off with HYSAs: they\u2019re flexible, but your returns may not be guaranteed.<\/p>\n With the Fed cutting interest rates recently, many savers are already seeing those yields drop. That makes locked-in returns more valuable than ever \u2014 and that\u2019s where a certificate of deposit (CD) shines.<\/p>\n With a CD, you lock in a guaranteed rate upfront, so your earnings stay steady for a set term, even if rates slip further. It\u2019s predictable, reliable growth, which is something you don\u2019t always get with traditional accounts.<\/p>\n Raisin makes that even easier by giving you access to high-yield and no-penalty CDs from top U.S. banks, all with no fees and minimums as low as $1.<\/p>\n Prefer higher returns? Choose a high-yield CD<\/a> for fixed, dependable earnings. Want flexibility? A no-penalty CD lets you access your money early<\/a> without the usual withdrawal fees that come with a typical CD.<\/p>\n Whether you\u2019re saving for something soon or building a cushion for the long haul, Raisin gives you a simple way to earn more without worrying that tomorrow\u2019s rate changes will eat into your returns.<\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.<\/p>\n @NBC10Philadelphia (1<\/a>); @WhiteHouse (2<\/a>); @ntdtv (3<\/a>); CNBC (4<\/a>; 5<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Getty Images Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.…\n","protected":false},"author":2,"featured_media":345759,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[13011,28,155,12,101,1168,17153,1170,4666,10188,724],"class_list":["post-345758","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-americans","tag-business","tag-dave-ramsey","tag-donald-trump","tag-economy","tag-jeff-bezos","tag-karoline-leavitt","tag-real-estate","tag-scott-bessent","tag-tax-refunds","tag-warren-buffett"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/345758","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=345758"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/345758\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/345759"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=345758"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=345758"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=345758"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}