Bilbo Baggins throws a party for himself and his protégé, Frodo. At the party, Bilbo announces that he is leaving his home to his heir, Frodo. He returns home and is met by his close friend, the wizard Gandalf. Gandalf insists that Bilbo remove the Ring that he has owned since the events of the previous adventure, chronicled in The Hobbit, and give the ring to his young heir. The Ring has special powers, the most obvious of which is to make the wearer invisible. Then Bilbo disappears.