If there's a password, people will be suspicious! Here are a couple ways to hide stuff more discretely:
1. If you're comfortable with Terminal, rename the folder .name or any name beginning with a period. It will then be invisible and only accessible from the Terminal with an ls -a. I can give you more info on this if you want.
2. If you're not comfortable with Terminal, you can simply choose an application (should work with any app), control click on it, select Show Package Contents and then just move your folder there.
The contents of your folder using either of these methods will never show up in any Spotlight search, and you won't have to type any passwords. Happy pornings!