Drive [Q] SD card and device security

Hey there,

I was reading about encrypting my SD card via settings > storage, but am turned off by the thought that flashing a rom or doing a factory reset will render the sd card useless because the encryption key would be bad. What is the best alternative for securing the SD card say, if the device was stolen? Can this be avoided by "keeping the previous Android device ID" in titanium backup when prompted?

As for the device itself, I am putting some trust into the Android Device Manager, which finds the phone much like Apple's 'Find my iPhone' via the google dashboard, but worry about the feature working when the time comes (if ever!)

Ammi doing it rite? What are some security advices you can give an android user, or perhaps a worthy article on the topic?

EDIT: After looking into the security > storage screen for my phone(HTC One M8), the process only encrypts new files, not currently existing files- which seems to be ineffective and a pain for encrypting all files. I am assuming files transferred to the SD card via USB connection on a PC is never encrypted? Only files loaded onto the SD card through the OS?
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2006 - 2016. Ten years of devices!

Samsung A900
, Apple iPhone 3G, HTC Supersonic: EVO 4G
HTC EVO 4G LTE, HTC One M8