Investors who had been less aware of mutual fund taxes had a rude awakening in 2000, when many funds had low or negative returns but still paid out large taxable distributions. Many shareholders who, in the past, might have been dismissive about fund taxes were horrified to learn they will be paying taxes on fund investments on which they lost money last year.

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A lot of people don't even know their tax bracket.

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Up to a quarter of an investor's return can be surrendered to Uncle Sam, and in a low-return environment like we experienced last year that can be meaningful. I'm patriotic, but you should not pay too much in taxes if you don't have to.

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But they don't have a clue as to what to do about them.

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Investors express concern about taxes and the tax implications of investing but are confused by a subject hat can become complicated very quickly.

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