Password managers are an essential tool in keeping yourself safe. You need to understand any password manager stores data that's encrypted, and the keys needed to decrypt (and the ones that encrypted it originally) originate on the machine(s) you're using. I don't like people having access to my data either; I run equipment that allows me to host file storage and other things that are worthwhile for me that I protect physically.
There are password managers you can host yourself, if you can guarantee it'll be online when you need it and keep up with security updates.
That said, my passwords are stored in a service I pay a small fee for. Every single thing I use online has a different, randomly generated password. I couldn't tell you what a single one of my passwords is. In tandem, everything I use that offers it also has some form of two factor authentication required.
Where I work is highly regulated with stringent security requirements. We still pay for, use, and require passwords in a password manager.
And trust me, you're using the cloud, whether you think you are or not. Think your data isn't out there? Wrong.
Paranoia and avoidance are a way. Another way is use these tools (and find ones that align with your values, they're out there) and use layers: encryption, two factor when possible, proactive alerting.
your cynical.
