Middle Earth
The one true ring had been destroyed in the fire and fury of Mordor, and the age of elves in Middle Earth had come to an end. Along with Gandalf, Frodo, and Bilbo, the elves set forth west over the sea to the land of Aman. The third age of Middle Earth was now history.
Gandalf knew that life would be different, as he was aware of the true nature of Valinor. It was cold and barren. A snow-covered wasteland at the uppermost pole of the Earth. His powers had grown exponentially when he had become the white wizard. Yet none knew of the final evolution of wizards. Not even Gandalf understood what was to come, for no wizard had transcended into another realm beyond the white wizards. It had been prophesized that when the white wizard returned to Valinor, his powers would amplify once more and he would become a new force of nature.
Gandalf was afraid. Would he become an evil lord in the same manner as the vanquished witch-king Sauron? Before this pending transformation, Gandalf was unable to envision his new destiny. He meditated through his last days as a white wizard, giving himself up to the prospect of being reborn again.
Immediately after disembarking from the elven ship, the last thing Gandalf the White gazed upon was the brilliant green ribbon of light in the sky that appeared to be flowing through time and space. He fell into a deep trance and left the mortal plane once more as he had done on the peaks of the Misty Mountains.
Time beyond thought passed, and when Gandalf regained awareness, he was wearing a red suit with a wide black belt held together by a shiny gold buckle. The white fur on his hat was warm and lovely. Elrond was there to greet Gandalf, along with the other elves. They were decked in vestments of red and green with little slippers on their feet that curled up at the toes. They were all so happy to see him stir again, and roused a big cheer. Elrond offered a toast with a creamy yellowish-tan drink for the return of his friend. To Gandalf, it all seemed to be very jolly and gay.
While Gandalf had been undergoing his metamorphosis, the elves had built a small city of houses, shops, and factories. There were red and white striped street markers and ornamented evergreen trees everywhere. And the lights! Rivendell never twinkled like this! It looked so beautiful with the backdrop of gently falling flakes on the snow-covered rooftops. Frodo and Bilbo turned the corner riding in a happy, jingling sleigh.
"Gandalf!" Shouted Frodo. " How I have missed you!"
Bilbo added, "We have been busy since you left us, Gandalf. The elves have built a new paradise."
Elrond spoke up next, declaring "Gandalf the Red has finally arrived!" A huge ovation arose among the elves and the roar filled the streets and alleyways of the town.
"We have a new mission," Elrond directed to Gandalf. All the elves sushed each other until there was an expecting silence. "And it starts with you, fair and fine wizard."
Elrond paused and smiled fondly at Gandalf. "From now on, you are no longer Gandalf the Red. You shall be known forever more in this fourth age of men and beyond, as... Santa Claus!"