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Byline: Donald Jay Korn
Many mutual fund investors were shocked this year. Share prices fell, yet they owed tax on distributions paid to them by their funds in 2000.
So far, investors face the same unhappy market result for 2001. Through Wednesday, the S&P 500 index had lost 13% this year.
One way to avoid the tax part of this problem is to invest in a variable annuity.
This is an investment contract you buy from a financial firm.
You direct how the money will be invested by choosing from a menu of portfolios called subaccounts.
Unlike regular mutual funds, variable annuities don't pay out their income and capital gains. But funds must …