My fiance keep a picture of his ex in his wallet?

[bucktickle]

You're not crazy, that's completely reasonable. He obviously keeps it for her, not just for his deceased friend. You should talk to him and tell him how it makes you feel. Try not to sound angry, and try and formulate what you're going to say beforehand because if you get a little angry he'll probably try and make out like *you're* the one being unreasonable, and you're not.
It's throwing all that stuff in your face and makes it seem like a part of him isn't over it. Seriously, nobody keeps pictures of old girlfriends... you get rid of them as part of moving on. Fair enough, keep it because of the other friend, but not in his wallet.
You're right to be annoyed by this.