FileVault + Time Machine - Help!

[TheMonarch]

I find myself noticing that more and more sensitive information is ending up on my Mac, to the point that I would be so horribly screwed if my Mac was ever stolen [Laptop].

So I'm thinking of setting up FileVault, but during the setup I get this:

So Now I don't know what to do. Time Machine has proven extremely valuable to me as it's saved the day more than one occasion. Losing the ability to recover individual files seems to be the biggest point in having time machine.

Anybody have any Ideas/recommendations?

 

[l8to89]

I have gone on a posting rampage since I am up late with nothing to do. I think i understand why this is happening, i one time after file vault had first come out enabled it cause it was a cool mac feature. I was in 10th grade, the most private information i had was IM logs, any way my laptop was failing and i hooked it up as an external to another computer and i could not find my homefolder it was invisible. I had to enable hidden folders go through this whole authorization thing, real pain. Any way i believe that time machine has the same issue, as i had. So i think you have to decide security or sound mind knowing you can retrieve files. I may be wrong and if i am some one please correct me, but i think that you have to choose.