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One consideration in where to put it is that this money is pre-marriage so that if it is kept in a separate account then, depending on your state laws, it may not have to be split in the event of a divorce. If you have it in a retirement account where you may make post marriage contributions then the entire amount may need to be split in a divorce since it was mixed with post marriage money.

I don't know about state pension plans but with private pension plans one risk of leaving it with a former employer is that if the pension plans defaults and is taken over by the PBGC, then you may not have the option of taking it out as a lump sum anymore. I would tend to take the money out and put it into an IRA or Roth just for simplicity. I would assume that you are relatively young and will have decades until you retire. If so then a targeted retirement fund or a balanced mutual fund is almost certain to earn more than the rate you will get in the fixed income pension account.


Interesting! That's a very realistic perspective that I had not considered. I'll look into laws on the Wisconsin Retirement System and 457s concerning divorce.

-Narn Ceredir
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