The classical way is straightforward.
Almost by inspection, the highest stress will likely be at the fillet at the end of the smallest step.
Use the classical Mc/I and TR/j to get the the torsional stress in the .5512 diameter section. The bending stress is from your side force. The torsional stress is from the turning.
Then, get a copy of Peterson's Stress Concentration Factors to get the stress concentration factor at the fillet for both torsion and bending.
Construct a Soderberg Diagram for your material. When doing this, safety factors of, say, three or so to the material data.
Then plot your duty point on the soderberg diagram. Your torsional stress times the stress concentration factor is a constant stress. The bending stress times the concentration factor is the alternating stress.
See if your stresses come under the wire.
The problem with finite element models is that the chief action is probably in the fillets, and if the fillet is not meshed fine enough, you'll probably won't get a good idea of concentrated stress.
Look perhaps in Mark's Handbook, or a college stress textbook to help you along.