An i5 for gaming would be best. An i7 will only benefit in things like rendering, editiing etc as they would use all the extra threads.
A 4690 (or 4690k if you can afford it) is a great gaming CPU. But also consider Skylake (if you haven't already got DDR3 RAM) as the prices of the equivelent CPU's to the 4XXX series are the same price if not cheaper, you will also benefit from the high frequency DDR4 RAM which is the same price as DDR3 now.
As for the GPU, AMD seem to have better cards at that GPU price point. An R9 380 4gb card is the best thing before moving into higher end cards like the r9 390 or gtx 970, it costs the same as a 960 and beats it in most titles.
Keep in mind though that both Nvidia and AMD are releasing new cards in the following months which could lower the prices of the existing range.