It's in the OP:
"I highly recommend using KeepassX as a password manager, secured using a key file and not a password. Also, you should download the source code, compile it (using a Linux machine) and always look over the source code for rogue functions, you CANNOT afford a vulnerability inside the password manager."
That being said, I'm decent with C++, and yet auditing its code is a little daunting.
I don't really understand the reasoning behind that - so rather than trusting a proven OS and its packages with lots of eyes on the critical code, I should rather read the code of a cryptographic product and then make a decision based on that? Common advice is not to write crypto code yourself, but reading it and deciding that there might be a backdoor based on gut feeling is right? And having identified some stuff I don't understand, then decide for another program that is goofy but easier to read, and compromise security?
So if there are rules to improve the privacy of users, I would worry about making it look to complex or extreme. I suspect rather than picking some parts that work for them they will go "ok this i can do, this I can do, and .. wait compile it myself and read the source?! - ok, I'll stick to post it notes".
1. http://keepass.info/help/base/security.html#secdesktop 2. http://arstechnica.com/security/2014/07/this-thumbdrive-hack... 3. http://keepass.info/help/base/security.html#secdictprotect
Because you're always just one burglary away from passwordocalypse?
My password database is stored on a USB key that I carry with me, with a regular copy made and securely stored.
Key file is stored on devices I use, in a directory restricted to my own access and on a drive which is encrypted. An encrypted copy is also stored on the USB key with the password database; this can be decrypted using a GPG, key stored on a yubikey and also carried; if a device can be trusted enough, this is how I move the key file around.
Access to the database requires 3 things rather than two. A long passphrase could be recorded by an observer, who could then take my USB key. The key file ensures that they still do not have all that they need.