(Washington, DC) The Government of the District of Columbia Department of Insurance, Securities and Banking (DISB) today cautioned that the vast majority of US investors do not appear to have important "investor survival skills" needed to build their savings into a retirement nest egg, according to a recent national survey.

A Securities Investor Protection Corporation (SIPC)/Investor Protection Trust (IPT) survey released December 13, 2005, found that more than four out of five active investors (83 percent) failed the SIPC/IPT test of key knowledge and behavior. Only 17 percent of respondents correctly answered a sufficient number of questions on knowledge (six out of eight questions) and behavior (three out of four questions).

"This survey is a yardstick that shows us how investor education in the District of Columbia and the rest of the nation needs to measure up if it is going to be helpful to investors," said DISB Acting Commissioner Thomas E. Hampton. "Everyone recognizes that investors need to know certain key facts and concepts, but it is important that they learn the behavioral process of investing, such as checking the background of a stockbroker or investment advisor, that may prove to be just as critical to their success in the long run."

Two of the few "bright spots" in the SIPC/IPT survey findings dealt with account statements and diversification. In responding to a key behavior question, nine in 10 investors said they regularly review their brokerage account and mutual fund statements. On the knowledge side of the survey, nearly three out of four investors (74 percent) showed they understand the concept of diversification, a major focus of investor education efforts by the IPT and other groups.