You do NOT NEED water cooling. Some people like it, but a good air cooler will take care of that cpu without much issue.
If you are on a budget, the CoolerMaster 212 evo is a great option that outperforms the stock cooler amd includes without all the noise.
As for the video card, it should take care of it self.
This is not to say you can not water cool the system, just that you do not have to.