It is generally not a good idea to invest in the stock market for the purpose of protecting your 401(k) from being taken during bankruptcy proceedings. While 401(k) plans and other types of retirement accounts may be protected from creditor claims in bankruptcy to some extent, the protections and exemptions vary by state and can be complex.
In general, 401(k) and other retirement accounts are protected from creditor claims in bankruptcy under federal law, but the specific protections and exemptions may vary depending on the type of retirement account and the state you live in. Some states provide additional protection for 401(k) and other retirement accounts beyond what is provided by federal law, while others may provide less protection.
If you are considering bankruptcy and have concerns about the potential impact on your 401(k) or other retirement accounts, it is important to seek the guidance of a bankruptcy attorney who is familiar with the laws in your state. A bankruptcy attorney can help you understand the protections and exemptions that may be available to you and advise you on the best course of action for your specific situation.