Hardly - Password Security over Navy Bean Soup

Never having really known my own grandfathers, I've cherished the opportunity to build a personal friendship with someone from their age cohort. My 90-something-year-old friend has a wealth of wisdom and accomplishments that never fail to inspire me to better myself. What better way to learn about thinking long-term and living life well than from someone twice my age? However, during our recent lunch, our casual conversation took an unexpected turn towards internet security and passwords. It seems like even a "lite" lunch can lead to discussions on important topics. My friend, still witty and sharp, was concerned about the security of his online presence, organizing his passwords, sharing crucial information with trusted contacts, and maintaining his autonomy and privacy. He's not ready to give up the reins anytime soon, nor should he. I offered a few pointers but suggested a more formal approach. So, let's delve into some best practices for password security and practical tips for estate planning, ensuring that your online life remains secure and accessible when needed.

Best Practices for Password Security:

1. Complexity is Key:

   - Use strong passwords that include a mix of upper and lower-case letters, numbers, and special characters.

   - Avoid easily guessable information like birthdays, names, or common words.

2. Unique Passwords for Each Account:

   - Never reuse passwords across multiple accounts. Each account should have its own distinct password.

3. Regular Password Changes:

   - Change your passwords periodically, at least every three to six months.

   - Use a password manager to keep track of your changing passwords.

4. Enable Two-Factor Authentication (2FA):

   - Whenever possible, enable 2FA for your accounts. This adds an extra layer of security by requiring a second verification step, such as a text message or authentication app code.

5. Beware of Phishing Attempts:

   - Be cautious of emails or messages requesting your login credentials. Verify the source and never click on suspicious links.

Remembering Passwords:

1. Use a Password Manager:

   - Consider using a reputable password manager like LastPass, Dashlane, or 1Password to securely store and autofill your passwords.

2. Create Mnemonics:

   - Develop memorable phrases or sentences that incorporate parts of your passwords to aid in recall.

3. Write Them Down Securely:

   - If you need to write down your passwords, keep them in a physically secure location, like a locked drawer or a safe.

Password Storage and Sharing:

1. Secure Digital Vaults:

   - Store sensitive information and passwords in digital vaults like encrypted notes apps or dedicated password management tools.

2. Share with Trusted Contacts:

   - Share essential account details and passwords with a trusted individual, like a family member or close friend, who can access them in case of emergencies. Trusted contacts allows a financial instruction to talk to someone, other than you, to confirm that you are not the object of financial exploitation due to unusual activity on your account.,

Practical Tips for Estate Planning:

1. Create a Letter of Instruction regarding digital assets to supplement your Will:

   - Include instructions for your online accounts and passwords in your estate planning documents.

   - Appoint a digital executor to handle your online presence after your passing. Set up a legacy contact on your iPhone so someone has access to your phone after your passing to access your apps and information needed to administer your estate.

2. Maintain an Updated Inventory of your Digital Assets:

   - Regularly update your list of accounts, passwords, and recovery options.

   - Ensure your trusted contacts have access to the most current information.

3. Use Secure and Accessible Storage:

   - Choose a secure method of storing your digital estate information, such as a safe deposit box or a secure cloud storage service. If you use secure cloud storage services, then include the information to access that information in your Letter of Instruction to your Will.

4. Regularly Review and Update:

   - Periodically review and update your digital estate plan to account for changes in your online presence. If the digital service provider provides a tool to designate access to your assets after death, then designate someone to handle that digital asset. Otherwise, your directions in your Will sets out who is charge of your digital assets.

By following these best practices for password security and implementing practical tips for estate planning, you can ensure that your online life remains secure and accessible while maintaining your autonomy and privacy, just like my remarkable 90-something-year-old friend.

This advice is free, but next time you are buying lunch!

About the Author – Dane Czaplicki, CFA®

Dane Czaplicki is CEO of Members’ Wealth, a boutique wealth management firm that offers a comprehensive approach to serving individuals, families, business owners, and institutions. The firm’s goal is to preserve and grow its clients’ wealth to endure over time, while thoughtfully evolving its strategy to suit an ever-changing world. With over 20 years of wealth management experience, Dane and the Members' Wealth team thrive on bringing clarity and confidence to clients' unique situations. He believes everyone needs sound financial advice from someone whose interests are aligned with theirs, and is determined to put service before all else.

Dane received his MBA from The Wharton School of Business at the University of Pennsylvania and his bachelor’s degree from Bloomsburg University. Outside work, he enjoys spending time with his wife and kids, hiking and camping, reading, running, and playing with his dog. To learn more about Dane, connect with him on LinkedIn.

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