Investors often equate “the market” with U.S. stocks. In reality, a large share of investable companies are located outside the United States. Recent data shows the U.S. at about 64 percent of global market value, which means roughly 36 percent sits abroad. Limiting a portfolio to the U.S. alone skips a meaningful slice of the opportunity set. Here is a clear case for keeping international exposure in the mix.
What is a Qualified Charitable Distribution?
The world is bigger than one market
Public companies operate across many countries and regions. Limiting a portfolio to a single country narrows the investment universe and ties results to one economy and one policy path. Investing globally opens the door to many industries, consumer markets, and innovation hubs.
Diversification is important
Adding international stocks can help smooth the ride by spreading risk across different growth drivers, economies, policy regimes, business cycles, and currencies. Because these forces do not move in perfect lockstep, combining domestic and international assets has historically reduced overall volatility and made returns more consistent over time.
Concentration is a real risk today
Currently, market leadership is unusually concentrated in a small group of mega cap companies. As of October 2025, the ten largest companies make up about 40 percent of the S&P 500’s market value. When a few names drive returns, they also dominate the risk. If those leaders stumble, the whole portfolio can feel it. Diversifying across regions and sectors helps keep results from hinging on a narrow slice of the market.
Leadership rotates over time
Market leadership tends to run in cycles. There have been multi-year periods when domestic stocks led and other stretches when international markets moved ahead. Because these cycles are hard to predict, keeping both exposures in place is usually more reliable than trying to time the handoff.
Valuations and currencies can help
Valuations vary across countries and can sometimes be more attractive abroad. There is also currency risk when you invest internationally. Depending on whether the dollar is strong or weak, exchange rates can either reduce or boost your returns.
How to put this into practice
- Start with the world in mind. Use the global stock market as your baseline. Adjust for your goals, risk tolerance, taxes, and costs.
- Keep it broad. Favor asset allocation that includes developed and emerging markets to avoid single country and single company risk.
- Set a currency policy. Long-term investors often don’t worry about currency changes when they invest in foreign stocks, because the ups and downs can balance out over time and help with diversification. For international bonds, hedging the currency usually helps keep bonds stable.
- Revisit and rebalance. Because regional performance rotates, periodic rebalancing helps trim what has run and add to what has lagged, keeping risk aligned with the plan.
Bottom line
International exposure gives you access to more of the investable world, reduces reliance on any single economy, spreads sector and company risk, and can help smooth portfolio ups and downs. A balanced, globally diversified approach, paired with periodic rebalancing, is a practical way to capture these benefits over time.
Have questions about the right level of international exposure for your portfolio? Contact us.
2025 QCD Limits
The annual QCD limit is indexed for inflation:
- 2025 Limit: $108,000 per person
- Married couples with separate IRAs can each give up to $108,000
This makes QCDs not only a meaningful way to support charities but also a significant planning tool for managing taxes in retirement.
Quick QCD Checklist
- You are age 70½ or older
- You have an IRA (not an active 401(k), SEP, or SIMPLE receiving contributions)
- You want to reduce taxable income while satisfying your RMD
- The amount is within the 2025 limit ($108,000 per person)
- The charity is a qualified 501(c)(3) organization
- Your IRA custodian will send the funds directly to the charity
- Obtain an acknowledgment letter from the charity for your tax records
A Tax-Smart Way to Support What Matters Most
A Qualified Charitable Distribution is more than just a gift. It’s a strategy that allows you to align your financial goals with your personal values, all while managing your tax picture in retirement.
At Trinity Wealth Management, we specialize in helping retirees make the most of opportunities like QCDs. If you’re wondering whether this strategy fits into your retirement and charitable giving plans, we’d love to help. Contact us to explore how QCDs can be part of your financial plan.
Stay Ahead with Expert Guidance
Sources:
1RMDs begin at age 75 for those born January 1, 1960 or later
2Exceptions to the 10-year rule include: surviving spouse, minor children of the decedent, those critically ill or disabled, and those not more than 10 years younger than the original account holder.
The commentary on this website reflects the personal opinions, viewpoints, and analyses of the Trinity Wealth Management, LLC employees providing such comments, and should not be regarded as a description of advisory services provided by Trinity Wealth Management, LLC or performance returns of any Trinity Wealth Management, LLC Investments client. The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment advice, performance data, or any recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Trinity Wealth Management, LLC manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.