Do I actually need a dedicated amp/DAC for my setup?

Do you need? Of course not… food, water, you need. Audio equipment you want. Is the amount of money you are talking about going to have a material impact on your kids? Let’s see, average tuition $35K + per year per kid. What will be the effect on your happiness looking back twenty years from now? You paid .001% more for your kids education or more enjoyable sound system. Will you use this while working… might you be happier while working and eventually earn more money. The question really has nothing to do with audio. Your equipment can be nearly infinitely upgraded to sound better.

Do kids need an education? Total waste of funds for some 

Daughter’s college fund is set. Daughter’s 401k is set (yep, you can do that, up to 6k/yr for minors), & now that she’s coming of working age, she’s gonna take care of funding half the $ herself.

The scholarship I founded was paid for by extra evening freelance because I’m a workaholic. This audio fun-time was founded & funded by the same extra freelance, but due to doctor’s orders that life of extra supplimentary freelance income’s gotta stop: health issues arose from 20 years of working 100+ hour weeks, multiple all-nighters in a row to meet deadlines. I’ve got to clock out at 6pm and that’s that. Which is dang tough switch when your mind & body are set in their Work All The Time Never Relax ways.

Now, with a steady full time (at long last!) staff gig & 3 Emmys on my shelf, I’m taking doctor’s ORDERS TO RELAX and got into this "sit down in a comfy chair and listen to music" hobby as a new thing to obsess about. Bipolar’s got a "collection / optimization" factor to it, thus chasing the white rabbit towards a great system. As another part of this "new relaxation regimen" (lol) I’ve taken on a few more ’hobbies’. I’m also a judge in other regions’ Emmys, set up a courseload of training for myself for personal development, interpersonal development & professional development, just started as a trained volunteer at an animal shelter, am a mentor in the Childrens’ Media Association, the leader of a Peer group at work, and am in a FranklinCovey 1-on-1 program with a personal development coach there. With all that, my "relaxation" time is now reallocated and I just wanna get the "setup" stage of my hifi station complete and just get in to plopping my butt down and listening. It bugged me that I had to turn the Phonitor all the way up to eleven to listen to records.

So... I first and foremost obsess about optimizing finances for family: maximizing my personal 401k (double 100% match by employer up to 5% of salary), monthly contributions to our short term savings & long term investment account, monthly contributions to my daughter’s college fund (with 90k there, 4 years still to save, and she ain’t goin to no Ivy) & the scholarship (3 scholarships at $1k apiece means one good 2 week long evening freelance gig a year)...
We’re good there.

And mind you: we ain’t richie riches. We’re month to month too, like everyone & their brother’s uncle. I wore hand-me-downs growing up & my mom cut our hair & sewed the drapes & made our backpacks from old denim. I finally made it a step up from that & I’m grateful for that grounding practical humble reality.

This, what I"m asking about here, is really a "settling in for the long haul" end of game gear scenario. If I sell the Phonitor / Schiits to get the Ferrum, then that’s it. I’m good. If the system I’ve got (streamer, play records & cds) can get by just fine without a respectable amp/DAC, then I can sell the Phonitor setup & reallocate those funds. That’s fine too. But as this is to be the last expenditure on audio gear (even including flagship headphones), I just want to make sure I’m set. I really don’t know if just using the turntable’s pre-amp is ok, or if it’ll like blow up my Audeze some day because just using a pre-amp isn’t what you’re supposed to do!

Hence, turning for advice to y'all who know worlds more than I ever will about this stuff.

Sorry.  That was long.

@master_of_pupppets Your opinion is what matters.

Can you upgrade?  Sure?

Do you need to in order to enjoy music?  Definitely not!  

Here's my alternative.  Invest in a (pick one or more):

• Excellent recliner (I am partial to Stressless)
• Music - albums or electronic media
• Glassware to enjoy your favorite beverage while listening to music

I love my system and I enjoy my friends systems too - the difference in their room, musical tastes and equipment ends up being irrelevant.  I like music and listening with friends makes it often even better while potentially introducing me to new music!