October 2025 - SouthStar Bank, S.S.B.

by SouthStar BankOctober 21, 2025

Welcome Eric Jon Simmons

Eric Jon Simmons, Vice President of Lending | SouthStar Bank Harker Heights Eric Jon Simmons has joined the SouthStar Bank Harker Heights team as a Vice President of Lending. Eric Jon holds more than two decades of experience in the finance industry developing a diverse expertise including Mortgage Originations, Sales Leadership, and Call Center Management. Eric was educated at Central Texas College in Broadcast Journalism and received additional education specific to Real Estate and Insurance. In his career, Eric Jon has successfully originated loans across both the wholesale and retail sectors. He finds great joy in helping clients on the verge of realizing their dreams. As a home loan expert, Eric Jon dedicates himself to helping families identify the ideal loan that aligns best to their unique needs as they embark on their homebuying journey. Eric Jon is eager to make a positive impact within the community and join a team that also prioritizes its communities. Outside of work, Eric Jon enjoys giving back to the Refuge Corporation (Mobile Food Pantry) through Christian House of Prayer Ministries in Killeen, TX, competing in Barbeque Competitions, Hiking and enjoying Dallas Cowboys and UT Longhorn Football! Welcome to the team, Eric Jon! NMLS# 741375

Retirement, Savings, Self-Directed IRA

by SouthStar BankOctober 15, 2025

Common Mistakes Made with Self-Directed IRA Accounts (SDIRAs)

A Self-Directed IRA (SDIRA) can be a powerful tool for those looking to diversify their retirement portfolio beyond traditional stocks and bonds. With the freedom to invest in real estate or other qualifiable assets. A Self-Directed IRA offers greater control, but also greater responsibility. Without proper guidance, it’s easy to make costly mistakes that can lead to penalties or even disqualification of your IRA. Here are five common mistakes consumers make with Self-Directed IRAs—and how you can avoid them. 1. Engaging in Prohibited Transactions One of the most common (and serious) mistakes is violating the IRS rules around prohibited transactions. These include buying or selling assets between your IRA and “disqualified persons”—such as yourself, your spouse, parents, children, or any entities they control. For example, you can’t use your Self-Directed IRA to buy a property that you or a family member lives in. Doing so could disqualify your entire IRA and trigger heavy taxes and penalties. Please abide by IRS guidelines to avoid prohibited transactions. 2. Failing to Understand IRS Rules and Compliance Unlike traditional IRAs, Self-Directed IRAs require you to stay informed about compliance regulations. The IRS has specific rules about valuation, recordkeeping, and annual reporting. If you fail to provide accurate valuations or don’t maintain proper documentation, your account could fall out of compliance. Checkbook style IRAs allow account holders flexibility, but it is your responsibility to ensure your investments remain compliant and properly reported. 3. Overlooking Due Diligence on Investments Because Self-Directed IRAs allow investment in nontraditional assets, the burden of research falls squarely on the account holder. Unfortunately, this can lead to investing in high-risk or fraudulent opportunities. Before committing your retirement funds, thoroughly vet each investment opportunity. Review financial statements, verify ownership, and assess long-term viability. If something seems too good to be true, it often is. 4. Neglecting Liquidity Needs Self-Directed IRAs often hold illiquid (cannot be sold or exchanged quickly) assets like real estate or private equity. While these investments can yield strong returns, they can also create challenges when it’s time to take required minimum distributions (RMDs) or cover unexpected expenses. It’s important to maintain some liquid assets within your IRA to ensure you can meet obligations without forcing the flash sale of long-term investments. 5. Doing It Alone Without Professional Guidance Managing a Self-Directed IRA can be complex. From IRS compliance to asset management, there are many moving parts that can trip up even seasoned investors. Working with your SouthStar Bank experts can help provide some oversight and structure needed to keep your account on track. At SouthStar Bank, we believe that every customer deserves the freedom to shape their financial future, without unnecessary risk. Whether you’re exploring real estate investments or diversifying your retirement portfolio, our experienced team can help guide you through the process with personalized support and trusted service. Have any questions? Ready to start your SDIRA journey? Contact your SouthStar Bank IRA experts today at 512.384.3948 or IRA@southstarbank.com. SouthStar Bank does not provide tax, legal or investment advice. […]

Savings

by SouthStar BankOctober 9, 2025

Savings Accounts for Kids: Benefits of Opening a Savings Account for Your Child

When it comes to teaching kids about money, starting early makes all the difference. One of the best tools parents in Texas can use to help their children build a strong financial future is a child savings account. At SouthStar Bank, we believe in making banking accessible, educational, and rewarding for families. Opening a savings account for your child provides long-term benefits that extend far beyond simply setting money aside; it lays the foundation for lifelong financial responsibility. 1. Building Financial Literacy from an Early Age A child savings account provides kids with a hands-on opportunity to learn about money management. By watching their balance grow with each deposit, children start to understand the value of saving and the rewards of patience. This type of financial literacy is a skill they’ll carry into adulthood. 2. Teaching Goal-Setting and Responsibility Whether your child is saving for a new bike, a college fund, or simply learning to save, having a dedicated account makes their goals more tangible. A child savings account helps children see the connection between discipline and rewards. Each deposit reinforces responsibility and encourages positive financial habits that will benefit them for years to come. 3. A Safe Place to Grow Savings Unlike a piggy bank or cash tucked away at home, a savings account at SouthStar Bank offers safety and security. Funds are federally insured, providing parents with peace of mind as their child’s savings steadily grow. 4. Strengthening the Parent-Child Connection Opening a savings account together provides a shared experience for parents and children. Visiting your local SouthStar Bank branch to make deposits or track balances online can turn into valuable teaching moments. These experiences help kids feel proud of their financial accomplishments while allowing parents to guide them every step of the way. 5. Preparing for the Future From school expenses to college tuition, savings can play a critical role in a child’s future. A child savings account at SouthStar Bank makes it easier to plan for the future. Starting small today can create a foundation for future financial stability, helping children be better prepared for the responsibilities of adulthood. 6. Local Support You Can Count On As an actual Texas bank with 105 years of experience in our communities, SouthStar Bank is dedicated to serving families with Southern hospitality and a personal touch. Our team makes it easy for parents to open an account, explain savings to their children, and keep the process stress-free. We take pride in being more than just a bank; we’re your partner in building a brighter financial future for your family! Opening a child savings account with SouthStar Bank is more than a financial step—it’s an investment in your child’s future. From building strong money habits to providing a safe place for savings to grow, the benefits are lifelong. Visit your nearest SouthStar Bank branch today to get started and give your child the gift of financial confidence.