What is asset allocation and how should a 25 year old single male plan?

Asset allocation would mean creating a well diversified portfolio of assets that would generate you a good chance of returns over your time horizon.

This will be determined by:

1) How much risk you're willing to take to achieve higher returns

2) Your time horizon

5 years is a short term horizon. Not suggested to take very high risk. A good 5050 split between equities and bonds could be ideal to give you some security in return and some chance of getting higher than 4% in returns.

If you don't want to take any risk, buying a 5 year bond would be ideal. Temasek is launching one for 2.7% returns.

Asset allocation is when you diversify your investments to balance out the risks and returns. Cant really give you a specific allocation because everyone is different. Some people are more willing to take risk so they invest everything in stocks. Some invest everything in bonds because they prefer lower risk. There is also balanced allocation where you invest 50% in stocks and 50% in bonds. You have to find out how much risk you are willing to take, the more returns you want the more risk you have to take. You have to remember to take into considerations of your wedding cost and kid as well.