Want to setup basic home audio system

My office setup is a pair of B&W 602’s (1st Gen) and a Marantz M-CR611. Works great, and used you can easily do it under 1k. CD, all streaming services etc. plus the option to add with other inputs. 

I have a relatively modest pair of AKG K701 open baffle headphones. I can also hear what’s happening outside of the headphones as though I don’t have anything on my ears.
These AKG K701s are an older model now, I found a new set on Ebay for $205 + tax and shipping.

You could play music through open baffle headphones and hear what you’re playing at the same time. Adjust the levels to suit your instrument?
I don’t know if this could work for you, that’s something you could perhaps look into?

If it does work, you could get a whole lot more quality for the outlay of your money with an open baffle headphone and headphone amplifier than with a $1000 speaker / amplifier / interconnect & speaker wire set / source setup I think.

Mine are nowhere near the best, and your budget could certainly get better and leave money for quality DAC and amplification.

Hi, as one of the choices of affordable acoustic I could recommend Pioneer SP-FS52 Andrew Jones Designed Floor Standing Loudspeakers. The speakers are pretty good for the price and definitely would be In your system price range. 

Watch the audiophiliac on youtube, he does these videos all the time...systems under 2500, under 1500, under 1000, etc....

I'll cut to the chase. The NAD C 328 is the most capable, best sounding  amp in its price range. Period. It will handle your streaming today, and later, vinyl better than most amps double its price. NAD has been doing that for over 40 years.  

Some will consider this a radical heresy, but for $30, you can add an Echo Dot which will stream, and give you voice control as well. Connect it via Bluetooth or old-school 3.5 mm to RCA patch cable.

Speakers are a much more subjective choice, but I would consider Monitor Audio Bronze 2, and a pair of decent speaker stands, say Pangaea LS 300, probably the 24" variety. The MA Bronze 2 have a 6.5" woofer, so offer decent, if not super extended  bass, and will later mate well with a subwoofer to fill in the bottom 1-1/2 octaves below 60Hz. My Second choices would include the B&W 607, and ELAC - Uni-Fi 2.0 UB52.

Forget fancy cables for now, but be sure to get a package of Blu-Tack to mate the speakers to the stands. it will make a difference.. And pay attention to the speaker setup, separation, distance to side and backwalls. I have heard $10,000 speakers ruined by by bad placement, and $500 ones become magical with good placement. 

Which leads to the final recommendation. A few hundred dollars spent on proper acoustical treatment for your listening room will improve the sound far, far more than that same investment in equipment. Try https://acousticalsolutions.com/ they have a broad selection and are very reasonably priced. 

You can get the NAD, Monitor Audio speakers, stands and acoustical panels all for around $1500. $1100 without the acoustical panels.