(1). Funds placed in relatively safe, income-oriented investments, intended to convince a conservative-minded client to invest other money in much more risky (read: expensive) investment than they otherwise would.
(1). To only execute a portion of an investment plan, just in case your recommendations end up sucking.
“Given the markets lately, I’d like to keep some powder dry in case we see a tactical move we’d like to make down the road. That’s okay, I’m not really sure I understand what I just said either…”