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Crazylegs883 asks,

Very good point - it's nice to avoid the fees if you can. Along that route - you mention $100,000 as your purchase. Is this the lowest denominator to buy direct or can you buy in $50 (or whatever) increments like I-bonds? For some of us, $100,000 is a little more than we'd like to plunk into paper at the moment <grin>

You can buy TIPS at auction in $1,000 increments. Vanguard charges a $25 fee to buy any amount TIPS at auction -- $1,000 or $1 million.

If the total value of your accounts at Vanguard exceed $1 million, Vanguard waives the $25 fee. In effect, you can then buy TIPS at auction commission free.

Because of the way TIPS are taxed, you should only hold them in an IRA/401k. I-bonds are the appropriate investment for taxable accounts.

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