Spike activity has been the dominant neural signal for behavior decoding due to its high spatial and temporal resolution. However, as brain-computer interfaces (BCIs) move toward high channel counts and wireless operation, the high sampling frequency of spike signals becomes a bottleneck due to high power and bandwidth requirements. Local field potentials (LFPs) represent a different spatial-temporal scale of brain activity compared to spikes, offering key advantages including improved long-term stability, reduced energy consumption, and lower bandwidth requirement. Despite these benefits, LFP-based decoding models typically show reduced accuracy and often rely on non-causal architectures that are unsuitable for real-time deployment. To address these challenges, we propose REALM: a retrospective distillation framework that enables causal LFP decoding. Inspired by offline-to-online distillation strategies in speech recognition, REALM transfers representational knowledge from a pretrained multi-session bidirectional LFP model to a causal version for real-time deployment. We first pretrain a bidirectional Mamba-2 teacher model using a masked autoencoding objective. We then distill this teacher model into a compact student model via a combined objective of representation alignment and task supervision. REALM consistently outperforms both causal and non-causal LFP-based SOTA methods for behavior decoding. Notably, our REALM improves decoding performance while achieving a $2\times$ reduction in parameter count and a $10\times$ reduction in training time. These results demonstrate that retrospective distillation effectively bridges the gap between offline and real-time neural decoding. REALM shows that LFP-only models can achieve competitive decoding performance without reliance on spike signals, offering a practical and scalable alternative for next-generation wireless implantable BCIs.