5 digital ways to store money documents |
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Privacy is another concern surrounding online storage services. After all, data traversing a public network such as the Internet is exposed to all kinds of vulnerabilities, from ill-intentioned intruders to information that accidentally ends up lost in transit.
"There are security concerns regarding how an online storage service provider moves your information from one place to the next," Schulz says. "That's why it needs to be encrypted, secure and protected."
A modest amount of homework, however, can ensure that the online service you select meets your space and security needs. After an initial backup, many services only back up those files that have been added or changed, making subsequent backups significantly faster.
When shopping around, ask about how many gigabytes of storage you'll receive and how many times a month you're permitted to access the service. Also, ask if there are any additional costs for uploading multimedia files -- a key question for taxpayers planning on storing photos of possessions they've donated to charity.
Schulz also recommends asking about security precautions
taken to protect your data. Find out whether data is password-protected
or data-encrypted. If technical jargon such as "SSL encryption"
sends your mind spinning, Schulz recommends going with a known entity.
"Would you park your most important documents with an unknown entity just because it has space for rent?" he asks. "Probably not."
However, remember that even the biggest names in the industry can wind up gobbled by a hungry competitor.
"These online storage service companies can be bought and sold," says Dennis O'Brien, president of Coastal Financial Advisors in Farmingdale, N.J. "And you don't really know what's going to happen to your data once a provider has been sold or merged with another."
For this reason, experts recommend asking a potential provider about the fate of your data in such an event.
2. USB flash drives
Typically weighing less than two ounces and about the size of a thumb, a USB flash drive packs a powerful punch when it comes to storing important documents.
With storage capacities ranging from as small as 512
megabytes to as large as 64 gigabytes, these portable devices slide
into the USB port of any desktop or laptop computer. Users can store,
swap and share documents, music, video clips and pictures.
Much as with a standard hard drive, you can save material
on USB flash drives again and again for indefinite usage. Many offer
protection in the form of a secure password. What's more, because
USB flash drives do not contain any internal moving parts, they
are known for their durability.
With prices starting at around $10, it's no wonder USB flash drives have taken the personal storage world by storm.
Still, there are drawbacks that can offset the benefits of price and portability.
"More flash drives are lost and stolen with important information on them than anybody knows or cares to admit," warns Schulz. "Flash drives are great, but they are probably your biggest point of vulnerability."
Shields agrees.
"You can save information on a flash drive for quite a long time because they don't have the potential for mechanical error," she says. "But they have a small-form factor, so they're easy to lose and aren't always best way to go for sensitive documents."
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