Figured it out. Since I did not want to limit the entire system to just things that had an install status of installed I used operational status as that appears to be the same for all CMDB tables. So I just change the before query to the code below.

(function executeRule(current, previous /*null when async*/ ) {
    current.addQuery('operational_status', '!=', 6); // Anything other then retired
})(current, previous);