The Relationship Difference

In order to accumulate and preserve wealth in today’s complex world, it is essential to understand and take advantage of the many financial, investment, and estate planning options available. We are committed to providing solutions that meet your needs. As one of the premier banks of South Texas, Texas Regional offers unmatched experience and expertise in all aspects of trust and wealth management.

Our Approach

At Texas Regional Bank, our dedicated team of investment professionals employs an investment philosophy based on your long term goals. We believe that each client is unique, and as a result, we have developed strategies that address the diverse needs of our clients. From wealth accumulation to preservation and distribution, our team will work with you, your attorney, and your CPA on all aspects of your plan. Our passion lies in the long term relationships we build and the high quality, sound results we provide.

Our Investment Philosophy

Most traditional advisors and investment managers strive to pick winners and losers in the market; however, trying to outperform the market frequently results in excessive trading costs and market under performance. We believe markets are efficient and that, consequently, it is nearly impossible to consistently outperform the market over time. Our investment approach focuses on creating diversified portfolios combined with attention to keeping trading and investment management fees as low as possible.

Wealth Management

Our Wealth Management Group serves the needs of families, foundations, and endowments. Whether it be managing risk, coordinating an investment strategy, or helping you think through other financial challenges, we will commit our resources in order to address your most important concerns and objectives.

Research has shown that certain characteristics within the stock and bond markets have been rewarded with higher returns over long periods of time. The overwhelming majority of an investment portfolio’s performance can be explained by an investor’s exposure to those characteristics, and portfolios can be structured along those dimensions of higher expected returns. Additionally, great value can be harvested through a patient, flexible approach to portfolio implementation. Taken together in an integrated process, research, portfolio design, and implementation are all areas of opportunity where TRB, seeks to add value over and above market benchmarks.

We believe:

Public capital markets work
In liquid and competitive markets, security prices reflect available information about fundamental values and the aggregate risk and return expectations of all market participants. Consequently, active management strategies cannot consistently add value through security selection and market timing.

Risk and Reward Are Related
A portfolio’s performance will be driven by its asset class allocation, not security selection.

Diversification is essential
Diversification helps reduce uncertainty, manage risk, and increase the reliability of outcomes. Furthermore, diversification adds value by providing flexibility, which in turn allows for more effective management and trading of a portfolio.

Costs Matter
Keeping costs as low as possible helps ensure that clients experience greater returns.

Retirement & Investments

What does retirement look like to you? What steps have you taken to ensure a comfortable retirement for yourself? Inflation, taxes, and other economic pressures can make retirement planning seem daunting. Texas Regional Bank’s team of investment professionals is available to help you better prepare for retirement by creating a customized retirement plan based on your unique needs.

Employer-Sponsored Retirement Plans

Attracting and retaining a valuable workforce is necessary to compete in today’s marketplace. By offering employer-sponsored plans to your valued employees, you are able to distinguish yourself from your competitors and provide peace of mind to your employees. Just as important, employer-sponsored plans provide significant tax advantages to both employers and employees.

Types of Plans:

• 401(k) retirement plans
• 403(b) retirement plans
• 457 retirement plans

Individual Retirement Accounts

An Individual Retirement Account (IRA), is an account that allows you to save for retirement while also enjoying certain tax breaks. Unlike retirement plans that are offered by your employer, IRAs are opened by individuals and small business owners. There are several types of IRAs:

• Traditional IRAs
• Roth IRAs
• SEP IRAs
• Simple IRAs

Traditional IRAs

A traditional IRA is a retirement savings account that offers unique tax benefits. Capital gains, interest payments, and dividends, which are held in your IRA, grow tax-deferred. This means you don’t pay taxes until you withdraw the funds from your account. This allows your IRA to grow much faster than a taxable account. In addition, your contributions may be tax deductible.

Eligibility

• Anyone with earned income may contribute to an IRA up to the age of 70 ½
• Your eligibility to deduct your contributions depends on your modified gross income and whether you participate in an employer-sponsored plan

Contributions

• You can contribute up to $6,000 annually, $7,000 if you’re over the age of 50
• Your IRA may invest in several types of investments, including stocks, bonds, mutual funds, and CDs

Roth IRAs

A Roth IRA is a retirement savings vehicle that allows after-tax contributions, meaning you’ve already paid taxes on them. In exchange for no upfront tax break, your withdrawals grow tax-free and earnings may be exempt from federal income taxes. If you expect to be in a higher tax bracket by retirement, this type of IRA may be right for you.

Eligibility

• Anyone with earned income may contribute to an IRA – there are no age restrictions
• You are not required to meet Required Minimum Distributions starting at 70 ½

Contributions

• Contributions are not tax deductible
• You can contribute up to $6,000 annually, $7,000 if you’re over the age of 50. However, contribution limit may be reduced depending on the modified adjusted gross income
• Your IRA may invest in several types of investments, including stocks, bonds, mutual funds, and CDs

SEP IRAs

A Simplified Employee Pension plan is a type of traditional IRA designed for small business owners and self-employed persons. A SEP can provide many benefits including:

Tax deduction: Employer contributions are usually tax deductible
Tax deferral: Contributions will accumulate tax-deferred until withdrawal
Flexibility: You decide each year whether or not to contribute and how much

Eligibility

• Corporations
• Partnerships
• Sole Proprietorships
• Government entities
• Tax exempt organizations

Contributions

• For 2019, you may contribute 25% of your total income or 20% out of your adjusted income. There is a maximum income level and includes a limit of $56,000, whichever is less.