Six Ways to Securely Store Your Online Passwords

Karin Prangley’s father-in-law suffered a stroke in 2009. At the time, he owned a home-based business selling supplies and handled all his transactions with the business credit card online. Not even his wife knew about the account. While he was out of commission, statements were piling up in his email, but nobody had the password to that either. Once he recovered enough to tell his family about the account, the bills were paid plus interest and penalties that the card company refused to waive. To prevent your family from facing similar hassles, you need to organize your online financial records securely. Some methods of storing your passwords include:

1. Use an electronic password manager. There are online companies that allow you to store all your passwords securely with one master electronic key. Beware that if a hacker figures out your master key, he now has access to all your passwords.
2. Rely on a digital gatekeeper. Many new companies assist in digital estate planning by storing your digital data and releasing it according to your instructions.
3. Put it in a cloud. To access these generic online storage services, your family would need your password and the name of the document.
4. Back up onto a USB flashdrive. You can even give it a password of its own.
5. Enter vital information in a looseleaf or notebook. The Beneficiary Book helps you organize your own looseleaf system, often addressing issues you wouldn’t have considered otherwise.
6. Use an old-fashioned lock box. A paper list can be deposited in a bank safe deposit box or a fireproof safe at home.

By mixing and matching these various methods, you can provide an extra layer of safety. Once you’ve organized all your information and put it in a safe place, let the necessary people know where they can find it.

See Deborah L. Jacobs, Six Ways to Store Securely the Keys to Your Online Financial Life, Forbes, Feb. 15, 2011.