Why now’s the time to revisit your personal financial plan

By Paulina Matel & Brad Stanek

This article first appeared in the October edition of Powersports Business.

Much of our financial planning dialogue tends to center on implications for dealership entities. While these conversations are important, they often overlook a critical piece of the bigger picture — the personal financial planning moves every dealership owner should be considering now. In this article, we will shift the focus from the showroom floor to your personal net worth statement — highlighting practical strategies to help you protect your wealth and align your personal and family goals. 

Stress-test your assets

Powersports dealership owners often have most of their wealth tied up in the dealership itself — real estate, inventory, and goodwill. While this concentration can drive growth, it also leaves personal finances vulnerable if market conditions shift. Stress testing your portfolio and liquidity — by modeling scenarios in poor, average, and strong market conditions — can highlight potential gaps in cash flow and reveal whether you have enough readily available assets to sustain your lifestyle and obligations.

Unfortunately, we see this story play out all too often. When uncertainty strikes, many dealership owners are forced to borrow against their 401(K)s, tap IRAs prematurely, or take on second mortgages and personal lines of credit just to stay afloat. By proactively addressing liquidity today, you can avoid these costly moves and be better positioned to weather the next downturn with confidence. 

Small moves. Big results

When we sit down with powersports dealers, we often find they’re not fully capitalizing on the small, incremental moves that — when compounded over years — can make a significant difference for their long-term wealth and their families. Simple steps like maximizing contributions to the dealership’s retirement plan (whether a SIMPLE IRA or 401(K)), taking advantage of the expanded 529 provisions for education savings, exploring whether new ‘Trump Accounts’ apply to your situation, and leveraging Roth contributions can all add up. The goal is to intentionally build a mix of tax-deferred, tax-free, and taxable assets, giving you more flexibility and efficiency when drawing income from your portfolio in the future.

Year-end tax planning

If you heard us speak before, you know we’re passionate about the importance of a strong advisory team for powersports dealers. This isn’t just critical in the year of a dealership sale — it matters every single year you’re operating. One of the most effective steps you can take is scheduling a call with both your tax adviser and your financial planner in the third or fourth quarter. In just an hour or two, you can review your estimated income and tax liability and, more importantly, explore proactive strategies to manage the year (especially in a year like 2025, where we’ve seen new tax legislation).

The call may include considerations like bunching deductions, evaluating how impactful charitable donations can be from both a personal fulfillment and tax advantage standpoint, and reviewing strategies like tax loss harvesting before year-end. A brief, focused conversation with your team can uncover valuable opportunities to help you get ahead of your taxes — not react to them after the fact.

Conclusion

At the end of the day, protecting your personal wealth as a powersports dealer requires the same discipline and foresight you bring to running your dealership. By stress-testing your liquidity, making small intentional financial moves, and surrounding yourself with a strong advisory team, you can make a meaningful difference for your future. A dealership is often your largest asset, but your financial security goes beyond the showroom — it’s about aligning your business success with your family’s future. 

For questions, resources, and help, please contact the Stanek-Haack Group at Morgan Stanley.

Brad Stanek, CFP, is an executive director with the Stanek-Haack Group at Morgan Stanley. Reach him at brad.stanek@ms.com; Paulina Matel, CFP, is a vice president with the Stanek-Haack Group at Morgan Stanley. Reach her at paulina.matel@ms.co