The elves were returning to their island-homeland - Valinor.

Rating: 8/10 (23 March 2016)

With the War of the Ring over, it signified the beginning of the Age of Men. So all elves who chose to stay in Middle-Earth would wane in power (that was why Elrond was so insistent that Arwen leave Aragorn). Gandalf is also from Valinor. He used to be a Maiar until he was sent to Middle-Earth along with 4 other wizards to aid in stopping Sauron. Bilbo and Frodo were given the privilege to live in Valinor for their part in the War as ring bearers. In the books, Sam Gamgee would be given the same privilege because he was a ring bearer too for a short amount of time.
Great movie, really. You could tell that this was all from a book, but still, the effects were amazing and the characters were all very interesting. Although, it made you crave more. It's why this movie had all the perfect qualities that you can find in a great fantasy movie, but it lacked the ending. It makes you want to see the next movie in the series.