Pros/cons of paying off business mortgage with early lump sum pension
I left my previous job in 2000 to buy my own business (which includes some land and my residence). Presently I have a high rate, interest-only mortgage and I’m having difficulty trying to refinance and making ends meet in general. I am now eligible for early pension benefits (I’m 55) from 27 years with my previous employer, and want to use the lump sum to pay off the mortgage. I know I’d be giving up future pension income but I see the payoff as a kind of investment. With the mortgage paid off, I could put the business income that would otherwise be used for the mortgage into savings and I would have full equity in the property. I would have hopefully another 10-15 years doing the work I enjoy, after which time the property value would likely be high enough where I could sell at a decent profit, which would cover my remaining years. And if I die in the meantime my kids would have money from selling the property, which they wouldn’t have from a monthly pension. What would the pros and cons be for something like this? I have a feeling I'm missing something important. Any advice will be appreciated.