Ask HN: Most Secure and Convenient Personal Authentication Solution

Hi HN,

Recently noticed some suspicious activity on one of my accounts and with all the hacks going on these days figured its about time (I know, I know...) I begin locking things down. I want to do this without a significant cost on convenience. Currently I use 1Password (software solution ex. not their SaaS offering) to store all my passwords.

What I'm thinking of using: 1Password + Yubikey for 2 Factor Auth

Even if my base password is compromised, Yubikey will prevent access via 2FA and is still convenient to use with their 'one-touch' usb sticks. It's a bit harder to use on Mobile though but most sites that offer 2FA seem to offer a SMS backup option. Is this as secure as I can be? Pros / Cons?