Unbelievable. You say you dont need to run high demand games and are approaching the nostalgia road. What kind of gimps me real bad here is you opting for an Intel cpu when AMD's are equal, let's say the 8350 vs intel i5. You get way more bang for your buck with an AMD since Intel are simply more expensive. Not saying Intel is bad, Infact Intel outshines AMD cpus in a lot but bang for the buck? AMD forever.
The r9 is a good pick, relatively cheap and it does great on todays games. If you are about to go with older games then you could downgrade this aswell but its nice to have there regardless, if you do wanna play some up to date games.
You say older games, they are a lot smaller than todays games in GB size overall. Why not opt for a 120gb SSD? It's cheaper and fills your purpose, its not hard to fit your OS and a couple of games on it and then simply change to the storage unit whenever you want to mix things up..and for the record, I sit on a 2.5'' SATA SSD aswell and I doubt you or me could notice a difference between the two lol.
What is a bit worrying is the part where you say you picked a random 650w psu, please dont do that. Go on pcpartpicker later when you've decided on your equipment and see what the estimated watt usage will be then opt for a GOOD brand, this is the most important part of your whole build. I highly doubt that you'll need anything above 500w. As it is right now atleast.