If someone came to you on Day 1 of your working life… or even now… what option would you choose?
The government will take out a small portion of your paycheck to help pay for services for you in the future (taxes). The services would include money for if you become unemployed, money for if you should you become disabled, and money for when you get old and want to retire (among other things, but let’s just go for these items).
The government does not take anything out of your paycheck (no taxes). If you fall on unfortunate times the government will not help you out – unemployed? Too bad. Disabled? Too bad. Want to retire? Hope you saved.
Option 1 offers you more of a safety net. However, Option 2 gives you more money up front to save, spend, and possibly invest and make more in the long run.
What would you pick?