New phono preamp vs NAD 1020

Probably lateral. A Cambridge 640p is probably the best phono preamp in your budget range

Thanks Manitunc. How do think the Cambridge would compare to Musical Fidelity's V-LPS?

I think you must find your current Phono stage is wanting. If that is the case then by all means get a new Phono stage. I assume that your cartridge is a MM. I think you should save up a few more bucks and get the Graham Slee Gram amp 2SE. It runs about $450 new but it is a bargain at that price. I strongly recommend it, I am very satisfied with mine.

Save your money for a Jolida JD9. You will get a much bigger increment in
performance up from a 640P or V-LPS than you get moving up to one of those
from the NAD. I say this as someone who upgraded from the Cambridge to the
Jolida.

In fact, I have an audio buddy who bought a used NAD 3130 integrated amp
from eBay for $75. He said it completely trumped his Cambridge 640P.